Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Questions 1 and 2 are based on the following scenario: 700 income-earning individuals from a district were randomly selected and asked whether they were employed

image text in transcribedimage text in transcribed
Questions 1 and 2 are based on the following scenario: 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) Using the results in column (6) and column (7), does the probability of working in the government depend on being a Male? (Assume a 5% level of significance for your response). a. The probability of working in the government depends on being a Male in column (6) but not in column (7). O b. The probability of working in the government depends on being a Male in column (7) but not in column (6). O C. The probability of working in the government depends on being a Male in both columns. O d. The probability of working in the government does not depend on being a Male in either column.QUESTION 2 Continue to use the results in column (6) and column (7) from Question 1. Matthew has 14 years of schooling. What is the probability that he will pass the test? According to the probit model? According to the linear probability model (LPM)? Report your answers to four decimal places

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Business Analytics Data Analysis and Decision Making

Authors: S. Christian Albright, Wayne L. Winston

5th edition

1133629601, 9781285965529 , 978-1133629603

More Books

Students also viewed these Mathematics questions