According to a recent estimate, the divorce rate in England has fallen to a 26-year low (The Guardian, August 29, 2008). However, it is documented that the rate of divorce is more than twice as high for men and women aged 25 to 29. John Haddock is a sociologist from Sussex University who wants to analyze the divorce rate based on the individual's age, family income, and the number of children that the couple has. He collects data on 30 individuals in a small town near Brighton, a portion of which is shown in the accompanying table.

a. Estimate and interpret a linear probability model where divorce (1 for divorce; 0 otherwise) depends on age (1 if 25-29 years old; 0 otherwise), family income (in £1,000s), and the number of children.
b. Do the data support the article's claim that the divorce rate is higher for those aged 25-29 years old? Explain.
c. Use the above estimates to predict the probability of divorce for an individual who is 27 years old, has £60,000 of family income and one child. Recalculate the probability with three children.

Transcribed Image Text:

Divorce Age Income (in £1,000s) Children 19 8 46 0 26 0