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15


θ-∣ = O θ2 θɜ

Figure 2.1: Distribution of the latent random variable t⅛ ~ N(xtiβ, 1) according to Albert
and Chib’s model considering four categories,
K = 3. The cutpoints θ% and Θ3 are random.
The observed value ⅛ is indicator of the interval where
Vi falls.




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