Re Lao Yi: oh.....

Re Juni: It's a joke

I understand the continuous variable concept, but when the latent variable is negative, then we can observe y(1) = 0, which means I lose? How did they come up with the always win conclusion?

.......

Re Juni: In the probit model, we cannot observe the latent variable y. In stead, we can only observe y(1) (in the example above, it means win or lose). This is what the latent variable model means.

What the joke above means is that no matter how the latent variable be, we can only observe that y(1) equals 1 (I win).

I am sorry for the unclearness!

Re Juni: In a latent variable model, the latent (unobservable) variable y is continuous. We can only observe that when y is negative then y(1) is 0, otherwise, when y is positive, we can observe that y(1) is 1.

Since the latent variable y is assumed to be continuous, the case that y=0 can be ignored because the probability of y=0 is zero.

HAHA

看不懂，sigh。。。

probit 不可以y=0?