Return to the probit results of table 15.3. (a) Interpret the likelihood ratio 2 test. What should

Return to the probit results of table 15.3.

(a) Interpret the likelihood ratio χ2 test. What should we conclude?

(b) Construct the 95% confidence interval for the effect of years of schooling on the probability of working in 1999.

(c) With k explanatory variables, equation (15.27) becomes

Imagine that

In this case, what is

How does it compare with the proportion of sample individuals who worked in 1999, which is 79.1%?

(d) Begin at

Add another year of schooling. How does the predicted probability of working change?

(e) Begin at

Add five more years of age. How does the predicted probability of working change?

Transcribed Image Text:

a+ bx |= k a+ +bx bx {{() j=1 j=l