In statistics

Statistics

Statistics is the study of the collection, organization, analysis, and interpretation of data. It deals with all aspects of this, including the planning of data collection in terms of the design of surveys and experiments....

 and econometrics

Econometrics

Econometrics has been defined as "the application of mathematics and statistical methods to economic data" and described as the branch of economics "that aims to give empirical content to economic relations." More precisely, it is "the quantitative analysis of actual economic phenomena based on...

, the multivariate probit model is a generalization of the probit model

Probit model

In statistics, a probit model is a type of regression where the dependent variable can only take two values, for example married or not married....

used to estimate several correlated binary outcomes jointly. For example, if it is believed that the decisions of sending at least one child to public school and that of voting in favor of a school budget are correlated (both decisions are binary), then the multivariate probit model would be appropriate.

Example: bivariate probit

are two binary dependent variables.


with



And:



Fitting the bivariate probit model involves estimating the values of .