1. Write down and describe the Logit model you would formulate in this case. 2. Estimating the model using a sample of 1,878 observations produces the following table of results. Fill in the “?" in the table and discuss the results. Coefficient Standard error t-statistic Age -0.004 ? -0.4 Male 0.064 0.08 ? Degree ? 0.11 2.45 Male x Degree 0.26 0.12 ? Constant 0.66 ? 2.06
1. Write down and describe the Logit model you would formulate in this case. 2. Estimating the model using a sample of 1,878 observations produces the following table of results. Fill in the “?" in the table and discuss the results. Coefficient Standard error t-statistic Age -0.004 ? -0.4 Male 0.064 0.08 ? Degree ? 0.11 2.45 Male x Degree 0.26 0.12 ? Constant 0.66 ? 2.06
A First Course in Probability (10th Edition)
10th Edition
ISBN:9780134753119
Author:Sheldon Ross
Publisher:Sheldon Ross
Chapter1: Combinatorial Analysis
Section: Chapter Questions
Problem 1.1P: a. How many different 7-place license plates are possible if the first 2 places are for letters and...
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Transcribed Image Text:You want to model the probability p of an individual being employed
(i.e. Emp= 1 if individual is employed and Emp = 0 otherwise) as a
function of the individual's age (i.e. Age), gender (i.e. Male = 1 if the
person is male, and Male = 0 if female), education (i.e. Degree=1 if
the person has degree, and Degree 0 if the person has no degree)
and the interaction between gender and degree.
=

Transcribed Image Text:1. Write down and describe the Logit model you would formulate in
this case.
2. Estimating the model using a sample of 1,878 observations produces
the following table of results. Fill in the “?" in the table and discuss
the results.
Coefficient Standard error t-statistic
Age
-0.004
?
-0.4
Male
0.064
0.08
?
Degree
?
0.11
2.45
Male x Degree
0.26
0.12
?
Constant
0.66
?
2.06
3. Calculate the marginal effect for each of the variables. Please show
the steps and formulas to calculating marginal effects, as well as
their numerical values. Interpret the calculated marginal effects.
4. What is the difference in probability of being unemployed between
someone who is 30, male, with degree and someone who is 65, male,
without degree?
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