Styles6. The following two regression models are Probit and Logit respectively:Pr(Y=1|X)=(Bo+Bi xXr+Bzx X2)Pr(Y=1|X)=F(Bu + B₁ × Xs + B₂ × X2)(a) what functions do and F represent?(b) How do Probit, and Logit ensure that the predicted probabilities are always between 0 and 1?(c) Sketch a graph of the Y= $(Z) function. (Z on the horizontal axis, Y on the vertical axis)(d) What estimation method is used to estimate the coefficients in a Probit/Logit model?(e) What are the two measures of fit for models with binary dependent variables?Focus88BE

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6. The following two regression models are Probit and Logit respectively: Pr(Y=1|X)= Pr(Y=1|X)=F(B+B (Bu + B₁ x X₁ + B₂ x X2) xXr+ B₂ × X2) (a) what functions do and F represent? (b) How do Probit and Logit ensure that the predicted probabilities are always between 0 and 1?

6. The following two regression models are Probit and Logit respectively: Pr(Y=1|X)= Pr(Y=1|X)=F(B+B (Bu + B₁ x X₁ + B₂ x X2) xXr+ B₂ × X2) (a) what functions do and F represent? (b) How do Probit and Logit ensure that the predicted probabilities are always between 0 and 1?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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1. An analyst from your firm used a linear demand specification to estimate the demand for its product and sent you a hard copy of the results: SUMMARY OUTPUT Regression Statistics Multiple R R Square Adjusted R Square Standard Error Observations ANOVA Regression Residual Total Intercept Price of X Income 0.38 0.14 0.13 20.77 150 df 2 147 149 SS 58.87 -1.64 1.11 10398.87 63408.62 73807.49 Coefficients Standard Error 15.33 0.85 0.24 MS 5199.43 431.35 t Stat 3.84 -1.93 4.63 F 12.05 P-value 0.00 0.06 0.00 Significance F 0 Lower 95% 28.59 -3.31 0.63 Upper 95% b. Which regression coefficients are statistically significant at the 5 percent level? a. Based on these estimates, write an equation that summarizes the demand for the firm's product. 89.15 0.04 1.56 C. When price is $10, what is the income elasticity for this product for an income level of 35?
5. The following estimated equation was obtained by OLS regression using quarterly data for 1978 to 1996 inclusive. Yt = 2.20+ 0.104Xt₁ - 3.48 Xt₂ + 0.34Xt3 (3.4) (0.005) (2.2) (0.15) Standard errors are in parentheses, the explained sum of squares was 109.6, and the residual sum of squares 18.48. a. Test at the 5% level for the statistical significance of the parameter estimates. b. Calculate the coefficient of determination.
I need Explaination based on the answer key answer is D but how. It is econometrics
In a regression model, if the variance of the dependent variable, y, conditional on an explanatory variable, x, or Var(y/x), is not constant, a. the t statistics are invalid and the confidence intervals are valid for small sample sizes. b. the t statistics are valid and the confidence intervals are invalid for small sample sizes. c. the t statistics and the confidence intervals are valid no matter how large the sample size. d. the t statistics and the confidence intervals are both invalid no matter how large the sample size. O a. a O b. b О с. C ○ d. d
Suppose you run the following regression: outcome=alpha0 + alpha1*female + alpha2*married + epsilon. You know that female equals 1 for females and 0 otherwise. You know that married equals 1 if the person is married and 0 otherwise. What is the estimated outcome for non-married females?
You are interested in how the number of hours a high school student has to work in an outside job has on their GPA. In your regression you want to control for high school standing and so you run the following regression: GPA = 3.4 0.03 * HrsWrk - 0.7 * Frosh - 0.3 * Soph +0.1 * Junior (1.1) (0.013) (0.23) (0.14) (0.08) where HrsWrk is the number of hours the student works per week, and Frosh, Soph, and Junior are dummy variables for the student's class standing. a) If you include a dummy variable for seniors, that would cause a Hint: type one word in each blank. For the rest of questions, type a number in one decimal place. b) The expected GPA of a Sophomore who works 10 hours per week is c) The expected GPA of a Senior who works 10 hours per week is d) If Dom and Sarah work the same number of hours per week, but Dom is a Junior and Sarah is a Freshman. Dom is expected to have a higher GPA than Sarah. e) Suppose you rewrite the regression as: problem. GPA = ₁HrsWrk + ß2Frosh + B2Soph +…
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Suppose we estimated our multiple linear regression, all of the variables have p values below 0.05 (so they are statistically different from zero) but the intercept has p-value equal to p=0.343. What does it mean?
The data for this question is given in the file 1.Q1.xlsx(see image) and it refers to data for some cities X1 = total overall reported crime rate per 1 million residents X3 = annual police funding in $/resident X7 = % of people 25 years+ with at least 4 years of college (a) Estimate a regression with X1 as the dependent variable and X3 and X7 as the independent variables. (b) Will additional education help to reduce total overall crime (lead to a statistically significant reduction in crime)? Please explain. (c) Will an increase in funding for the police departments help reduce total overall crime (lead to a statistically significant reduction in total overall crime)? Please explain. (d) If you were asked to recommend a policy to reduce crime, then, based only on the above regression results, would you choose to invest in education (local schools) or in additional funding for the police? Please explain.
18 Calculate the least square regression líne equation with the given X and Y values. Consider the values: X Y 60 3.1 61 3.6 62 3.8 63 4 65 4.1 To Find, Least Square Regression Line EquationY = a+ b X
Question 22 A computer depreciates 32% per year. A computer is bought for $1200. What is an equation to model this where V is the value of the computer and t is the years that passs since it is bought. Ov= 1200(-0.32)t OV= 1200(0.32) OV = 1200(1.32) OV = 1200(0.68) Question 23 A computer depreciates 32% per year. A computer is bought for $1200. What is an equation for the year since the comupter is bought as a function of the computer's worth? Ot=10g0.68 (1200)
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