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Probability differences and odds ratios measure conditional-on-covariate effects and population-parameter effects

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\(\newcommand{\Eb}{{\bf E}} \newcommand{\xb}{{\bf x}} \newcommand{\betab}{\boldsymbol{\beta}}\)Differences in conditional probabilities and ratios of odds are two common measures of the effect of a covariate in binary-outcome models. I show how these measures differ in terms of conditional-on-covariate effects versus population-parameter effects. Difference in graduation probabilities I have simulated data on whether a student graduates in 4 years […]

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