Ordered forecast, latent variable or probability

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maxchen
Posts: 191
Joined: Fri Oct 10, 2008 4:03 pm

Ordered forecast, latent variable or probability

Postby maxchen » Sat Oct 09, 2010 6:53 pm

Hi

In ordered model, when forecasting using models obj, there also find some inconsistent forecast, the fitted probability indicates category 2 (max prob), however the latent variable forecast to be lied in category 3.

which one is to be chosen? latent variable or probability?

EViews Glenn
EViews Developer
Posts: 2682
Joined: Wed Oct 15, 2008 9:17 am

Re: Ordered forecast, latent variable or probability

Postby EViews Glenn » Mon Oct 11, 2010 10:31 am

Probability. The fitted indices only have meaning when run through the CDF.


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