Assembly-line work it is not suited for everybody because it is tedious and repetitive. A production manager would like to predict whether a newly hired worker will stay in the job for at least one year (Stay equals 1 if a new hire stays for at least one year, 0 otherwise). Predictor variables include age, sex (Female equals 1 if female, 0 otherwise), and whether the worker has worked on an assembly line before (Assembly equals 1 if worked before, 0 otherwise). The accompanying file includes data for 32 assembly-line workers.

a-1. Estimate the linear probability model and the logistic regression model where being on the job one year later depends on Age, Female, and Assembly.

Note: Negative values should be indicated by a minus sign. Round your answers to 2 decimal places.

Predictor Variable Linear Model Logistic Model

Constant __________ ___________

Age __________ ____________

Female __________ ___________

Assembly ___________ ___________

a-2. Which of the following statements correctly infer the significance of the Assembly variable on Stay in both models.

Note: You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answers and double click the box with the question mark to empty the box for a wrong answers. Any boxes left with a question mark will be automatically graded as incorrect.

check all that apply

a. It has a positive and significant influence at the 1% level.

b. It has a positive but not significant influence at the 1% level.

c. It has a positive and significant influence at the 5% level.

d. It has a positive but not significant influence at the 5% level.

b. Compute the accuracy rates of both models.

Note: Do not round intermediate calculations and round final answers to 2 decimal places.

Linear Probability Model __________%

Logistic Regression Model __________%

c-1. Use the preferred model to predict the probability that a 45-year-old female who has not worked on an assembly line before will still be on the job one year later.

Note: Round coefficient estimates to at least 4 decimal places and final answer to 4 decimal places. Report the probability between 0 and 1 (not in %).

Predicted Probability = __________

c-2. Use the preferred model to predict the probability that a 45-year-old female who has worked on an assembly line before will still be on the job one year later.

Note: Round coefficient estimates to at least 4 decimal places and final answer to 4 decimal places. Report the probability between 0 and 1 (not in %).

Predicted Probability = ___________

Stay	Age	Female	Assembly
0	35	1	0
0	26	1	0
1	35	0	0
0	28	0	0
1	31	1	0
0	31	1	0
1	55	0	1
0	23	0	0
0	22	1	0
1	43	0	0
1	25	1	1
0	46	1	0
0	22	0	1
1	29	0	1
1	29	0	1
1	58	1	1
0	37	0	0
0	44	0	1
1	55	1	1
1	32	1	1
1	38	1	0
0	32	0	0
0	25	0	1
1	28	1	1
1	47	1	1
1	32	1	1
0	28	0	0
1	52	0	1
0	19	0	0
0	41	1	1
1	40	1	0
1	38	0	1