Ollinger, Michael; Nguyen, Sang V.; Blayney, Don P.; … - 2005
(i.e., is not profitable) and Y = 0 if it survives (remains profitable), and let X
be defined as a vector of independent …. Mathematically, this is written as:
Prob (Y
i
= 1) = Prob (�
i
< 0), (1)
where longrun profits �
i
equal b’X
i
+ e
i
, with X
i
equal … to a vector of char-
acteristics that affect profitability and e
i
is a random error term:
= Prob (b’X
i
+ e
i
< 0 …