Do you think that your model has explanatory power

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Reference no: EM13499715

This file contains data on three variables, yi, x2i and x3i. yi, is a binary variable that takes values of 1 or 0 only.
Estimate a probit model in which y, is the dependent variable and x2i, and x3i, are explanatory variables.
(a) Enter the value of McFadden's pseudo-R2 in the box below (rounded to 3 decimal places).

(b) Use a likelihood ratio test with a 5% significance level to test the joint null hypothesis that x2i, and x3i, may both be omitted from the model. Enter the value of the test statistic in the box below (rounded to 3 decimal places).

(c) Based on the results of the above test. do you think that your model has explanatory power?

Reference no: EM13499715

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