The following logit model from J.S Cramer on the household budget survey of 980 was based on a sample of 2820 households. The purpose is to determine car ownership as a function of income. Car ownership was a binary variable: Y=1 if a household owns a car, zero otherwise. -2.772 + (-3.35) 0.348 In Income Own = %3D (4.05) x2 = 16.681 ,p – value:0.000 The number in the parentheses are t statistics. 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 а car?

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