adjust variables to dichotomous variablesgap can range

ols

coefficients and std errors

B = (xx) (xy)

sigma = sigma sqrd (xx)^-1

sigmaB = sqrt(diag(s)

GLSB = (xU^-1X)^-1 * xU^-1y)(xI^-1x)^-1 * xU^-1y(xx)^-1 *xys

identity matrix I multiply matrix by 1 is the same thing(xIx)^-1 *xIy

U^-1

We weight by their variance. Weigh high variance lower, low variance high.

S = sigma^2(xU^-1x) ^-1

ProbabilityE(y) = p = y/nV(y) = p(1-p)