Here is the two-equation model in brief: student i goes to Catholic school (Ci = 1) if

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Here is the two-equation model in brief: student i goes to Catholic school

(Ci = 1) if IsCatia + Xib + Ui > 0, and graduates if Ciα + Xiβ + Vi > 0.

(a) Which parameter tells you the effect of Catholic schools?

(b) The Ui and Vi are variables. Options (more than one may be right):

data random latent dummy observable

(c) What are the assumptions on Ui and Vi?

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