Question: Ordered choice models (20 points) Using data in nels_small.dat, estimate an ordered probit model where the dependent variable, PSECHOICE, is treated as an ordered (ranked)

Ordered choice models (20 points) Using data in nels_small.dat, estimate an ordered probit model where the dependent variable, PSECHOICE, is treated as an ordered (ranked) variable with 1 representing the least favored alternative (no college) and 3 denoting the most favored alternative (four-year college). 11. Estimate the ordered probit model to include student's grade (GRADES), family income (FAMINC), family size (FAMSIZ), and the indicator variables BLACK and PARCOLL. Discuss the signs and signicance of estimates. (Hint: Recall that the sign indicates the direction of the effect for the highest category. but is opposite for the lowest category). 12. Test the null hypothesis that the two cut points are equal. What is your conclusion? Show your work

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