Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

what are the commands in the case of Rstudio? Use R, and estimate the model deny - pirat +back+hrat Ahmed), livrat Bob,chist Cumhist Yagmur that

what are the commands in the case of Rstudio?

image text in transcribedimage text in transcribed

Use R, and estimate the model deny - pirat +back+hrat Ahmed), livrat Bob,chist Cumhist Yagmur that is the third variable is just for you. Then calculate the probability of denial for a black and white applicant when pirat= 3, hirat= 25, vrat= 75, ch st=2.1, and mhist=1.7 In table 11.1 you can find the defnitions of these variables. deny= 1 if mortgage application denied, 0 otherwise pirate Ratio of total monthly debt payments to tota monthly income black= 1 if applicant is black. O if white hirat Ratio of monthly housing expenses total monthly income livrat Rat o of size of loan to assessed value of property chist=consurrer credit score mhist= mortgage credit score InR start with library(AER) chist= consumer credit score mhist= mortgage credit score in R start with library(AER) data( HMDA) then convert "deny" to numeric and change "afam" to "black" 1. first use the linear probability model 2. then probit model Use R, and estimate the model deny - pirat +back+hrat Ahmed), livrat Bob,chist Cumhist Yagmur that is the third variable is just for you. Then calculate the probability of denial for a black and white applicant when pirat= 3, hirat= 25, vrat= 75, ch st=2.1, and mhist=1.7 In table 11.1 you can find the defnitions of these variables. deny= 1 if mortgage application denied, 0 otherwise pirate Ratio of total monthly debt payments to tota monthly income black= 1 if applicant is black. O if white hirat Ratio of monthly housing expenses total monthly income livrat Rat o of size of loan to assessed value of property chist=consurrer credit score mhist= mortgage credit score InR start with library(AER) chist= consumer credit score mhist= mortgage credit score in R start with library(AER) data( HMDA) then convert "deny" to numeric and change "afam" to "black" 1. first use the linear probability model 2. then probit model

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

Fundamentals Of Accounting Course 2

Authors: Claudia B. Gilbertson

9th Edition

053844827X, 9780538448277

More Books

Students also viewed these Accounting questions

Question

=+ Is the information source free from bias on the subject?

Answered: 1 week ago

Question

=+ Is the information source knowledgeable about the subject?

Answered: 1 week ago

Question

=+2. How will it be used?

Answered: 1 week ago