A group of big furniture and electronics stores asked you to estimate a model that determines...

 

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A group of big furniture and electronics stores asked you to estimate a model that determines the probability of households to own durable goods from a sample of 200 households. As an econometrician you estimate a parsimonious logit model to determine the ownership of durable goods as a function of worker wages. Durable goods ownership is a binary variable: Y= 1 if a household owns a durable goods, zero otherwise. The estimated logit model is given by [,and where InWages is the logarithm of wages. L 8 se = -2.77231 (0,8275) = + 0.347582 InWages (0,0858) A group of big furniture and electronics stores asked you to estimate a model that determines the probability of households to own durable goods from a sample of 200 households. As an econometrician you estimate a parsimonious logit model to determine the ownership of durable goods as a function of worker wages. Durable goods ownership is a binary variable: Y= 1 if a household owns a durable goods, zero otherwise. The estimated logit model is given by [,and where InWages is the logarithm of wages. L 8 se = -2.77231 (0,8275) = + 0.347582 InWages (0,0858)

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A classic econometric problem Youve estimated a logit model to determine the probability of househol... View the full answer