Question: a. Answer (a) through (c) from Exercise 11.1 using the results in column (3). b. Sketch the predicted probabilities from the probit and linear probability

a. Answer (a) through (c) from Exercise 11.1 using the results in column (3).
b. Sketch the predicted probabilities from the probit and linear probability in columns (1) and (3) as a function of Experience for values of Experience between 0 and 60. Do you think that the linear probability is appropriate here? Why or why not?
Four hundred driver's license applicants were randomly selected and asked whether they passed their driving test (Passi = 1) or failed their test (Passi = 0); data were also collected on their gender (Malei = 1 if male and = 0 if female) and their years of driving experience (Experiencei in years). The following table summarizes several estimated models.

Exercise 11.1
a. Does the probability of passing the test depend on Experience? Explain.
b. Matthew has 10 years of driving experience. What is the probability that he will pass the test?
c. Christopher is a new driver (zero years of experience). What is the probability that he will pass the test?

Dependent Variable: Pass Probit Logit Linear Probobility Probit Logit Linear Probability Probit 0.006 (0002) 0.041 (0.156) -0.174 (0.259) -0.0i5 (0.019) 0.806 (0.200) Experience 0.031 0.040 (0.009) (0.016) 0.333 0.622 (0.161) (0.303) Male -0.071 (0034) Malex Experience 0.712 1.059 (0.126) (0.221) 0.774 (0034) 1.282 2197 (0.124) (0.242) 0.900 (0.022) Constant

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a The tstatistic for the coefficient on Experience is t 00060002 3 which is significant ... View full answer

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