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You want to estimate whether there is a relationship between gender and smoking at your university. You collect data for a random sample of 200 students and run a linear probability model, a probit model and a logit model, where the dependent variable is a binary indicator for whether an individual smokes, and the main explanatory variable is a dummy variable indicating males (you also include other controls such as age). Your estimated coefficients are 0.084 in the LMP, 0.688 in the probit model, and 0.389 in the logit model. In spite of these large differences, all three models yield similar estimates of the marginal effect of gender on the probability of smoking. How can this be?
What is the new profit maximizing output?
What were the aggregate supply shocks to the American economy during the 1970s and early 1980s How did these shocks affect interpretation of the Phillips Curve What are the characteristics of the long-run Phillips Curve
Over a period of years, a toothpaste has received a mean rating of 5.9, on a 7-point scale, for overall customer satisfaction with the product. Because of a minor unadvertised change in the product
You have opened your own word processing service. You have already bought a special computer needed for word processing and paid $5,000 for it. However, due to the cost changes in the computer industry, the current price of an equivalent machine i..
Seven years ago a vertical drill was purchased for $10,000. Drill had 12 years of expected life and zero estimated value at the end of that period. The current market value of the drill is $1,000. The new drill's total investment cost would be $12..
Develop a CPG for these service times using the ITM
A project generates decreasing cash flows, $10,000 one year from now, decreases $1,000 every year and the project at the end of year 6 (6 years from now). At an annual interest rate of 12%.what type of Gradient is this
The value of a successful project is $420,000; the probabilities of success are 1/2 with good supervision and 1/4 without. The manager is risk-neutral, not risk-averse as in the text, so his expected utility equals his expected income minus his di..
On January 2d, 2011, BMW expects to ship 19,000 Mini-Cooper cars from its affiliated plant in the UK to the US, which it will sell through US dealers on 300-day terms at $26,500 each. So BMW will receive payment from its dealers on October 28th
There are 168 hours in a week. Of these, about 60 hours will go to sleeping (more or less). That leaves 108 hours for which we have a choice in terms of how we will spend that time. Let's assume that we will spend the 108 hours in either work or l..
.In the long run, a price increase from $1 to $2 has an elasticity of supply of 1.50. So how many popsicles will be sold per day in the long run if the prices rises to $2 each ( Hint : Apply the midpoints approach to the elaticity of supply.)
Select at least 5 sales items, and evaluate the price elasticity of demand for each item
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