Homework Help is Here – Start Your Trial Now!
Math
Statistics
4. You study the determinants of attending college. You run a linear probability model: College 0.300+0.050 grades +0.001 faminc-0.005- male +u, = (0.059) (0.005) (0.0005) (0.034) where College is a dummy variable that takes the value of 1 if a person decides to go to college and 0. otherwise. The independent variables include high school grades (1 = worst, 10 best), annual family income ("famine", measured in $1000), and a binary variable indicating male. (a) Use the estimated coefficients to explain how high school grades and family income affect the probability of attending college? Which of these effects are significant at the 1% level? (b) Predict the probability of attending college for a student with the following characteristics: (1) has a grade-4; (2) has a family income = $200,000; (3) female 1=

4. You study the determinants of attending college. You run a linear probability model: College 0.300+0.050 grades +0.001 faminc-0.005- male +u, = (0.059) (0.005) (0.0005) (0.034) where College is a dummy variable that takes the value of 1 if a person decides to go to college and 0. otherwise. The independent variables include high school grades (1 = worst, 10 best), annual family income ("famine", measured in $1000), and a binary variable indicating male. (a) Use the estimated coefficients to explain how high school grades and family income affect the probability of attending college? Which of these effects are significant at the 1% level? (b) Predict the probability of attending college for a student with the following characteristics: (1) has a grade-4; (2) has a family income = $200,000; (3) female 1=

Calculus For The Life Sciences
Calculus For The Life Sciences
2nd Edition
ISBN:9780321964038
Author:GREENWELL, Raymond N., RITCHEY, Nathan P., Lial, Margaret L.
Publisher:GREENWELL, Raymond N., RITCHEY, Nathan P., Lial, Margaret L.
Chapter12: Probability
Section12.CR: Chapter 12 Review
Problem 93CR
See similar textbooks
icon
Related questions
Question
Title No Spacing Heading 1 Styles √y 4. You study the determinants of attending college. You run a linear probability model: College 0.300+0.050 grades +0.001 faminc-0.005 - male + u, (0.059) (0.005) (0.0005) (0.034) where College is a dummy variable that takes the value of 1 if a person decides to go to college and 0 otherwise. The independent variables include high school grades (1= worst, 10 = best), annual family income ("famine", measured in $1000), and a binary variable indicating male. (a) Use the estimated coefficients to explain how high school grades and family income affect the probability of attending college? Which of these effects are significant at the 1% level? (b) Predict the probability of attending college for a student with the following characteristics: (1) has a grade=4; (2) has a family income = $200,000; (3) female Focus I Heading 2 8 HA 22 Find Replace Select Editing
Transcribed Image Text:Title No Spacing Heading 1 Styles √y 4. You study the determinants of attending college. You run a linear probability model: College 0.300+0.050 grades +0.001 faminc-0.005 - male + u, (0.059) (0.005) (0.0005) (0.034) where College is a dummy variable that takes the value of 1 if a person decides to go to college and 0 otherwise. The independent variables include high school grades (1= worst, 10 = best), annual family income ("famine", measured in $1000), and a binary variable indicating male. (a) Use the estimated coefficients to explain how high school grades and family income affect the probability of attending college? Which of these effects are significant at the 1% level? (b) Predict the probability of attending college for a student with the following characteristics: (1) has a grade=4; (2) has a family income = $200,000; (3) female Focus I Heading 2 8 HA 22 Find Replace Select Editing
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps with 2 images

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Similar questions
Recommended textbooks for you
Calculus For The Life Sciences
Calculus For The Life Sciences
Calculus
ISBN:
9780321964038
Author:
GREENWELL, Raymond N., RITCHEY, Nathan P., Lial, Margaret L.
Publisher:
Pearson Addison Wesley,
College Algebra (MindTap Course List)
College Algebra (MindTap Course List)
Algebra
ISBN:
9781305652231
Author:
R. David Gustafson, Jeff Hughes
Publisher:
Cengage Learning
Holt Mcdougal Larson Pre-algebra: Student Edition…
Holt Mcdougal Larson Pre-algebra: Student Edition…
Algebra
ISBN:
9780547587776
Author:
HOLT MCDOUGAL
Publisher:
HOLT MCDOUGAL
SEE MORE TEXTBOOKS