Question

Consider a binary response variable y and an explanatory variable x. The following table contains the...

Consider a binary response variable y and an explanatory variable x. The following table contains the parameter estimates of the linear probability model (LPM) and the logit model, with the associated p-values shown in parentheses.

Variable LPM Logit
Constant −0.69 −6.30
(0.06 ) (0.06 )
x 0.06 0.21
(0.04 ) (0.06 )


a. Test for the significance of the intercept and the slope coefficients at the 5% level in both models.



b. What is the predicted probability implied by the linear probability model for x = 20 and x = 36? (Round intermediate calculations to at least 4 decimal places and final answers to 2 decimal places.)



c. What is the predicted probability implied by the logit model for x = 20 and x = 36? (Round intermediate calculations to at least 4 decimal places and final answers to 2 decimal places.)

Math   Statistics-And-Probability   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Consider a linear regression model where y represents the response variable, x is a quantitative explanatory...
Consider a linear regression model where y represents the response variable, x is a quantitative explanatory variable, and d is a dummy variable. The model is estimated as  yˆy^  = 15.4 + 3.6x − 4.4d. a. Interpret the dummy variable coefficient. Intercept shifts down by 4.4 units as d changes from 0 to 1. Slope shifts down by 4.4 units as d changes from 0 to 1. Intercept shifts up by 4.4 units as d changes from 0 to 1. Slope shifts...
Given the following data set, let x be the explanatory variable and y be the response...
Given the following data set, let x be the explanatory variable and y be the response variable. x 8 2 2 6 6 3 1 y 3 8 9 6 4 7 9 (a) If a least squares line was fitted to this data, what percentage of the variation in the y would be explained by the regression line? (Enter your answer as a percent.) ANSWER: % (b) Compute the correlation coefficient: r=
Given the following data set, let x be the explanatory variable and y be the response...
Given the following data set, let x be the explanatory variable and y be the response variable. x 1 6 7 3 1 5 2 y 10 4 4 7 9 5 8 (a) If a least squares line was fitted to this data, what percentage of the variation in the y would be explained by the regression line? (Enter your answer as a percent.) ANSWER: % (b) Compute the correlation coefficient: r=
Consider the following information on the expected return for companies X and Y. Economy Probability X...
Consider the following information on the expected return for companies X and Y. Economy Probability X Y Boom 0.24 38 % 17 % Neutral 0.49 13 % 29 % Poor 0.27 −28 % 4 % a. Calculate the expected value and the standard deviation of returns for companies X and Y. (Round intermediate calculations to at least 4 decimal places. Round your final answers to 2 decimal places.) b. Calculate the correlation coefficient if the covariance between X and Y...
Consider the following information on the expected return for companies X and Y. Economy Probability X...
Consider the following information on the expected return for companies X and Y. Economy Probability X Y Boom 0.15 25 % 12 % Neutral 0.56 12 % 27 % Poor 0.29 −27 % 7 %      a. Calculate the expected value and the standard deviation of returns for companies X and Y. (Round intermediate calculations to at least 4 decimal places. Round your final answers to 2 decimal places.) Company X Company Y Expected Value % % Standard Deviation %...
Calculate the mean, the variance, and the standard deviation of the following discrete probability distribution. (Negative...
Calculate the mean, the variance, and the standard deviation of the following discrete probability distribution. (Negative values should be indicated by a minus sign. Round intermediate calculations to at least 4 decimal places. Round your final answers to 2 decimal places.) x −41 −27 −8 −3 P(X = x) 0.29 0.35 0.21 0.15
Calculate the mean, the variance, and the standard deviation of the following discrete probability distribution. (Negative...
Calculate the mean, the variance, and the standard deviation of the following discrete probability distribution. (Negative values should be indicated by a minus sign. Round intermediate calculations to at least 4 decimal places. Round your final answers to 2 decimal places.) x −41 −27 −8 −3 P(X = x) 0.29 0.35 0.21 0.15
Consider the following sample regressions for the linear, the quadratic, and the cubic models along with...
Consider the following sample regressions for the linear, the quadratic, and the cubic models along with their respective R2 and adjusted R2. Linear Quadratic Cubic Intercept 9.31 9.64 9.70 x 2.56 2.65 1.76 x2 NA −0.30 −0.32 x3 NA NA 0.25 R2 0.782 0.806 0.864 Adjusted R2 0.780 0.803 0.863 a. Predict y for x = 1 and 5 with each of the estimated models. (Round intermediate calculations to at least 4 decimal places and final answers to 2 decimal...
Suppose that x is a binomial random variable with n = 5, p = .56, and...
Suppose that x is a binomial random variable with n = 5, p = .56, and q = .44. (b) For each value of x, calculate p(x). (Round final answers to 4 decimal places.) p(0) =0.0164 p(1) =0.1049 p(2) =0.2671 p(3) =0.3399 p(4) =0.2163 p(5) =0.0550 (c) Find P(x = 3). (Round final answer to 4 decimal places.) P(x = 3) 0.3399selected answer correct (d) Find P(x ≤ 3). (Do not round intermediate calculations. Round final answer to 4 decimal...
A random variable X is exponentially distributed with a mean of 0.16. a-1. What is the...
A random variable X is exponentially distributed with a mean of 0.16. a-1. What is the rate parameter λ? (Round your answer to 3 decimal places.) a-2. What is the standard deviation of X? (Round your answer to 2 decimal places.) b. Compute P(X > 0.25). (Round intermediate calculations to at least 4 decimal places and final answer to 4 decimal places.) c. Compute P(0.14 ≤ X ≤ 0.25). (Round intermediate calculations to at least 4 decimal places and final...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT