For the union participation example considered in section 13.9:

(a) Replicate Tables 13.3 and 13.5.

(b) Using the measures of fit considered in section 13.8, compute R2 1,R2 2, . . .,R2 5 for the logit and probit models.

(c) Compute the predicted value for the 10th observation using OLS, logit and probit models.

Also, the corresponding standard errors.

(d) The industry variable (IND) was not significant in all models. Drop this variable and run OLS, logit and probit. How do the results change? Compare with Tables 13.3 and 13.5.

(e) Using the model results in part (d), test that the slope coefficients are all zero for the logit, probit, and linear probability models.

(f) Test that the coefficients of IND, FEM and BLK in Table 13.3 are jointly insignificant using a LR test, a Wald test and a BRMR using OLS, logit and probit.