User Account

All Pages

Econometrics, Applied Statistics

Assignment Help:
Ask question From the household budget survey of 1980 of the Dutch Central Bureau of Statistics, J. S. Cramer obtained the following logit model based on a sample of 2820 households. (The results given here are based on the method of maximum likelihood and are after the third iteration.)** The purpose of the logit model was to determine car ownership as a function of (logarithm of) income. Car ownership was a binary variable: Y = 1 if a household owns a car, zero otherwise.

Li = —2.77231 + 0.347582 ln Income t = (—3.35) (4.05) X2(1 df) = 16.681 (p value = 0.0000)

where Li = estimated logit and where ln Income is the logarithm of income. The X 2 measures the goodness of fit of the model.

a. Interpret the estimated logit model.

b. From the estimated logit model, how would you obtain the expression for the probability of car ownership?

c. What is the probability that a household with an income of 20,000 will own a car? And at an income level of 25,000? What is the rate of change of probability at the income level of 20,000?

d. Comment on the statistical significance of the estimated logit model.

"Optional.

" J. S. Cramer, An Introduction to the Logit Model for Economist, 2d ed., published and distributed by Timberlake Consultants Ltd., 2001, p. 33. These results are reproduced from the statistical package PcGive 10 published by Timberlake Consultants, p#Minimum 100 words accepted#

Related Discussions:- Econometrics

Multiple regression analysis, Complete the multiple regression model using ...

Complete the multiple regression model using Y and your combined X variables.  State the equation.  Next, make sure that you evaluate overall model performance with the Anova table

Sample, types of sampling method

types of sampling method

Quality control, what is quality control

what is quality control

Standard deviation for grouped data, Grouped data  For ...

Grouped data  For grouped data, the formula applied is  σ = Where f = frequency of the variable, μ= population mea

Time series analysis, limitations of time series analysis

limitations of time series analysis

Central tendency, Definition of Central Tendency The central tendency o...

Definition of Central Tendency The central tendency of a variable means a typical value around which other values tend to concentrate which can be measured. Such concentration

Disadvantages of mode, Disadvantages The value of mode cannot always...

Disadvantages The value of mode cannot always be determined. In some cases we may have a bimodal series. It is not capable of algebraic manipulations. For example, from t

Large sample test for proportion, Large Sample Test for Proportion A ra...

Large Sample Test for Proportion A random sample of size n (n > 30) has a sample proportion p of members possessing a certain attribute (success). To test the hypothesis that t

Ogives, ogives graph

ogives graph

Make a decision about the claim, Make a decision about the given claim. Do...

Make a decision about the given claim. Do not use any formal procedures and exact calculation. Use only the rare event rule. Claim: A coin favors head when tossed, and there

Write Your Message!

Captcha
Order Assignment

Featured Services

Order Now

Popular Subjects

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +91-977-207-8620

Phone: +91-977-207-8620

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd