MATLAB: An Introduction with Applications
MATLAB: An Introduction with Applications
6th Edition
ISBN: 9781119256830
Author: Amos Gilat
Publisher: John Wiley & Sons Inc
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Question

Suppose variable Y measures financial ratings A : y = 1, B : y = 2, and C : y = 3, that is, the creditworthiness A: high, B: intermediate, C: low for unit of measurement firm i.

Model Y by means of an ordered Logit model as a function of {X1,X2} and estimate your model by means of a built-in command.

 

Question: Solve this in R using appropriate codes.

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Step 1: Given information
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Step 2: Modelling Y by means of the ordered logit model as a function of {X1, X2}
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Step 3: Interpretation of the output:
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Solution
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