Econometrics, Ask question From the household budget survey of 1980 of the Dutch Central, Applied Statistics

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#

Write Your Message!

Name

Email id

Message

Verfication Code

User Account

All Pages

Econometrics, Applied Statistics

Related Discussions:- Econometrics

Age at first marrage, get a questionnaire that captured age at first marria...

Regression, why we use dummy variable

Introduction to multiple regression, In simple regression the dependent var...

Expected average time, Question: A car was machine washes each car in 5 min...

Simple linear regression, We are interested in assessing the effects of tem...

Applied, Question 1 Suppose that you have 150 observations on production (...

Regression model, Using a random sample of 670 individuals for the populati...

Detect sources of error, how detect sources of error in sample survey

Decision theory, 1. Definition of decision tree, 2. Feature of decision the...

Association of attributes, In an examination 600 candidates appeared, boys ...

Write Your Message!

Featured Services

Online Tutoring

Project Development

Exam Preparation

Course Help

Assignment Help

Popular Subjects

Assured A++ Grade

Academics

Major Subjects

Majors

Get In Touch

TERMS & POLICIES

HELP & SUPPORT