Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Suppose that the following binary dependent models. The model is based on the driving test of the 400 randomly selected driver's license applicants. Y=1 if

image text in transcribed
Suppose that the following binary dependent models. The model is based on the driving test of the 400 randomly selected driver's license applicants. Y=1 if passed the test, or 0 otherwise, and X1 is years of experiences, X2 is the years of educations. Logit: P(Y=1/X) = F(0.563+ 0.040X1+ 0.057X2) LPM: P(Y=1/X) = 0.071+ 0.011X,+ 0.068X2 a. What are the probabilities of passing the test for a person with 10 years of experiences and 10 years of educations in each model? b. What are the probabilities of passing the test for a person with no experience and no education at all in each model? c. Sketch the predicted probabilities for each model, assuming X2 is fixed at 10. Do you think that the linear probability is appropriate here

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered 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

Managerial Accounting An Introduction to Concepts Methods and Uses

Authors: Michael W. Maher, Clyde P. Stickney, Roman L. Weil

10th Edition

1111822239, 324639767, 9781111822231, 978-0324639766

Students also viewed these Mathematics questions