Hello there,
I am estimating a linear probability model of a rare outcome (97%=0, 3%=1) because I was asked to include fixed effects which is not sensible in a nonlinear model. I know there are other problems with this! The (adjusted/within) r^2 is basically 0. However, that is not too uncommon for such a rare outcome, and the coefficients of interest all have a sensible sign and high statistical significance.
Given that I use the linear probability model, could you please advise me on how to implement an auroc measure in this setup?
Thank you!
Doro
I am estimating a linear probability model of a rare outcome (97%=0, 3%=1) because I was asked to include fixed effects which is not sensible in a nonlinear model. I know there are other problems with this! The (adjusted/within) r^2 is basically 0. However, that is not too uncommon for such a rare outcome, and the coefficients of interest all have a sensible sign and high statistical significance.
Given that I use the linear probability model, could you please advise me on how to implement an auroc measure in this setup?
Thank you!
Doro