Question 3

Taylor Witt is a woman with 16 years of schooling. Predict the probability that the government will employ her using the estimated Probit model with the interaction term of the gender dummy and years of schooling. Report your answer [a value between D and 1)_ to M decimal places. You can use any of pnon'n in R or the ztables in the Quizzes folder. 700 income-earning individuals from a district were randomly selected and asked whether they were employed by the government (Gov = 1) or failed their entrance test (Gov = 0) data were also collected on their gender (Male = 1) if male and = 0 if female) and their years of schooling (Schooling, in years). The following table summarizes several estimated models. (Standard errors are in parentheses). Dependent Variable: Gov Linear Linear Probit Logit Probability Probit Logit Probability Probit (1) (2) (3) (4) (5) (6) (7) Schooling 0.272 0.551 0.035 0.548 (0.029) (0.062) (0.003) (0.091) Male -0.242 -0.455 -0.050 4.352 (0.125) (0.234) (0.025) (1.291) Male X Schooling -.344 (0.096) Constant -4.107 -8.146 -0.172 -1.027 -1.717 0.152 -7.702 (0.358) (0.800) (0.027) (0.098) (0.179) (0.021) (1.238)