The following hypothetical data give the participation rates in a particular type of recycling program and the

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The following hypothetical data give the participation rates in a particular type of recycling program and the number of trucks purchased for collection by 10 towns in a small mid-Atlantic state:

2 3 4 5 Town Trucks 10 305 203 365 206 270 250 210 170 160 340 11 62 48 71 79 74 83 Participation% 87 84

The town of Eleven is contemplating initiating a recycling program but wishes to achieve a 95 percent rate of participation. Using a probit model for your analysis,

a. How many trucks would the town expect to have to purchase in order to achieve their goal?

b. If trucks cost $20,000 each, then is a goal of 90 percent reachable within a budget of $6.5 million? (That is, should they expect to reach the goal?)

c. According to your model, what is the marginal value of the 301st truck in terms of the increase in the percentage participation?



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Econometric Analysis

ISBN: 978-0130661890

5th Edition

Authors: William H. Greene

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