QUESTION 4Which of the following tables represents a valid discrete probabilitydistribution?X1P(X=x) 0.33XP(X=x)XP(X=x)XP(X=x)00.3350.2130.3330.0410.04100.0360.1250.2320.2370.1930.1990.11110.16451.03 0.16152025300.33 0.19 0.16 0.0891215180.23 0.19 -0.03 0.16

4) We know that the condition for a valid discrete probability distribution-(1) Each individual…

Answered: QUESTION 4 Which of the following…

Algebra & Trigonometry with Analytic Geometry

13th Edition

ISBN:9781133382119

Author:Swokowski

Publisher:Swokowski

Chapter10: Sequences, Series, And Probability

Section10.8: Probability

Problem 10E

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The variable smokes is a binary variable equal to one if a person smokes, and zero otherwise. Using the data in SMOKE, we estimate a linear probability model for smokes: smokes = .656 – .069 log(cigpric) + .012 log(income) – .029 educ (.855) (.204) (.026) (.006) [.856] [.207] [.026] + .020 age – .00026 age? – .101 restaurn – .026 white [.006] (.006) (.00006) (.039) (.052) [.005] [.00006] [.038] [.050] n = 807, R² = .062. The variable white equals one if the respondent is white, and zero otherwise; the other independent vari- ables are defined in Example 8.7. Both the usual and heteroskedasticity-robust standard errors are reported. (i) Are there any important differences between the two sets of standard errors? (ii) Holding other factors fixed, if education increases by four years, what happens to the estimated probability of smoking? (iii) At what point does another year of age reduce the probability of smoking? (iv) Interpret the coefficient on the binary variable restaurn (a dummy…
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