For the home ownership data given in Table 15.1, the maximum likelihood estimates of the logit model

Question:

For the home ownership data given in Table 15.1, the maximum likelihood estimates of the logit model are as follows:

Î¡ = In -493.54 + 32.96 income 1– P, t= (-0.000008)(0.000008)

Comment on these results, bearing in mind that all values of income above 16 (thousand dollars) correspond to Y = 1 and all values of income below 16 correspond to Y = 0. A priori, what would you expect in such a situation?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Basic Econometrics

ISBN: 978-0073375779

5th edition

Authors: Damodar N. Gujrati, Dawn C. Porter

See More Books

Question Posted: May 29, 2018 03:06 AM

See More Questions

OGrady Apparel Company was founded nearly 160 years ago when an Irish merchant named Garrett OGrady landed in Los Angeles with an inventory of heavy canvas, which he hoped to sell for tents and wagon...
Suppose that Pattys Pool has the demand data given in Table. Further, suppose that Patty has just two types of costs: (1) rent of $24 per day and (2) towel and other service costs equal to $5 per...
The U.S. Census Bureau published the home ownership rates given in Table 2. The following transition matrix P is proposed as a model for the data, where H represents the house holds that own their...
To eliminate service inconsistencies, companies rely on ___________ and ___________.
A retiree inherits $93,000 and invests it at 6.6%, compounded monthly, in an annuity that provides an amount at the end of each month for the next 12 years. Find the monthly amount. (a) Decide...
Using dimensional equations, convert (a) 3 wk to milliseconds. (b) 38.1 ft/s to miles/h (c) 554 m 4 /(day kg) to cm 4 / (min g).
What is a contra-asset? Give an example of one.
Pink Martini Company has gathered the following information. Units in beginning work in process ............20,000 Units started into production .............72,000 Units in ending work in process...
Fanning Company makes and sells products with variable costs of $ 2 4 each. Fanning incurs annual fixed costs of $ 3 7 8 , 0 0 0 . The current sales price is $ 8 7 . Note: The requirements of this...
Data table Beg. Bal. Feb. 6 Feb. 15 Feb. 23 Feb. 28 End. Bal. Beverly Associates 14 W Gadsden St Pensacola, FL 32501 BANK OF TOMORROW 123 PETER PAN RD, KISSIMMEE, FL 34747 DEPOSITS Deposit Deposit...
Refer to the data given in the following table. If YÌ i is negative, assume it to be equal to 0.01 and if it is greater than 1, assume it to be equal to 0.99. Recalculate the weights w i and...
In studying the purchase of durable goods Y (Y = 1 if purchased, Y = 0 if no purchase) as a function of several variables for a total of 762 households, Janet A. Fisherobtained the following LPM...
Explain the Social Technographics Score and the resultant four types of social media users.
What economic forces affect valuations?
What are the strengths and limitations of scenario analysis?
What is the role of the term sheet?
Given that $E_{p}(x, \delta)$ from Theorem 1.13 can be written as \[E_{p}(x, \delta)=\frac{1}{p !} \int_{x}^{x+\delta}(x+\delta-t)^{p} f^{(p+1)}(t) d t\] show that \(E_{p}(x, \delta)=\delta^{p+1}...
Why do preferred shares automatically convert in case of an IPO?
Over one-half of Americans get 7 or fewer hours of sleep each night, and over one-quarter get 6 or fewer hours of sleep each night. Use the graph, which shows the number of hours Americans sleep, to...
TRUE-FALSE QUESTIONS 1. In terms of preliminary analytical procedures, assume that the company has introduced a new product with a low price point and significant customer demand. The auditor would...
What is the impact of information systems on organizations? a. Describe the major economic theories that help explain how information systems affect organizations. b. Describe the major behavioral...
How do Porters competitive forces model, the value chain model, synergies, core competencies, and network economics help companies develop competitive strategies using information systems? a) Define...
What are the challenges posed by strategic information systems, and how should they be addressed? a. List and describe the management challenges posed by strategic information systems. b Explain how...
1) Pretend that you work in a hospital. Its not really possible to have an MVP for something like surgery. For example, you cant complete half a surgery, check for market feedback, then go back and...
Many Geotechnical engineering projects require knowledge of the shear strength of soils. What is the purpose and goal of the direct shear test ?
a) A person has set out to deposit $750 per month for 5 years (60 months) into a bank account that pays 1.75% per month interest at the end of each month. What will be the accumulated amount at the...

For the home ownership data given in Table 15.1, the maximum likelihood estimates of the logit model

Question:

Î¡ = In -493.54 + 32.96 income 1– P, t= (-0.000008)(0.000008)

Step by Step Answer:

These data will yield a perfect fit since all values of X above 16 ...View the full answer

Basic Econometrics

Students also viewed these Business questions