Introduction to Econometrics 3rd Edition by James Stock, Mark Watson

تمرين 16

Based on the following scenario: Four hundred driver's license applicants were randomly selected and asked whether they passed their driving test ( Pass i = 1) or failed their test ( Pass i = 0); data were also collected on their gender ( Male i = 1 if male and = 0 if female) and their years of driving experience ( Experience i in years). The following table summarizes several estimated models.
a. Answer (a) through (c) from Exercise using the results in column (2).
b. Sketch the predicted probabilities from the probit and logit in columns (1) and (2) for values of Experience between 0 and 60. Are the probit and logit models similar
Exercise
Using the results in column (1):
a. Does the probability of passing the test depend on Experience Explain.
b. Matthew has 10 years of driving experience. What is the probability that he will pass the test
c. Christopher is a new driver (zero years of experience). What is the probability that he will pass the test
d. The sample included values of Experience between 0 and 40 years, and only four people in the sample had more than 30 years of driving expe-lienee. Jed is 95 years old and has been driving since he was 15. What is the model's prediction for the probability that Jed will pass the test Do you think that this prediction is reliable Why or why not