QUESTION 4You have data on a sample of women of childbearing age in Botswana, which you want to use tostudy what affects the decision of having children. For each woman in the sample, you observethe binary variable child for whether they have children, years of education (educ), age in years(age), an indicator for living in a urban area (urban), an indicator for presence of electricity inthe house (electric), and an indicator for ever being married (evermarr). You run the followingtwo Probit regressions in Stata:• probit child c.age##c.age educ i.urban i.electric i.evermarr, nologProbit regressionNumber of obs4,358LR chi2(6)1981.05Prob > chi2Pseudo R20.0000Log likelihood = -1505.72430.3968child |Coef.Std. Err.P>|z|(95% Conf. Interval]age |.498523.02132823.370.000.4567208.5403252c.age#c.age |-.0068284.0003493-19.550.000-.0075129-.0061438educ I-.0157116.0076358-2.060.040-.0306775-.0007457-.16576-.3189878.0453264-.01181351.urban |-.0602168.0538495-1.120.2631.electric |-.1654007.0783622-2.110.0351.evermarr |.3586488.06260465.730.000.2359461.4813515_cons |-7.106355.2972466-23.910.000-7.688948-6.523763• probit child educ i.urban i.electric i.evermarr, nologProbit regressionNumber of obs4,358LR chi2(4)841.60Probchi20.0000Log likelihood =-2075.45Pseudo R20.1686child ICoef.Std. Err.P>|z|[95% Conf. Interval]educ |-.0496809.0063896-7.780.000-.0622044.03715741. urban |1.electric I-.0670348.0468442-1.430.152-.1588479.0247782.0341736.06822290.500.616-.0995409.16788811. evermarr |1.196584.049883223.990.0001.0988151.294353cons|.5463433.05170810.570.000.4449974.6476891The Likelihood Ratio Test statistic to test the null hypothesis that age has no effect on theprobability of having children isO LR = -1505.7243 - 2075.45 = -3581.1743O LR = 2 x (-1505.7243 + 2075.45) = 1139.4514O LR = -1505.7243 + 2075.45 = 569.7257O LR = 2 x (-1505.7243 - 2075.45) =-7162.3486

Formula for the test statistic of log likelihood ratio test: Test statistic=-2lθ0^-lθ^ From the…

Answered: You have data on a sample of women of…

MATLAB: An Introduction with Applications

6th Edition

ISBN:9781119256830

Author:Amos Gilat

Publisher:Amos Gilat

Chapter1: Starting With Matlab

Section: Chapter Questions

Problem 1P

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