For the home ownership data given in Table 15.1, the maximum likelihood estimates of the logit model are as follows: 11eb5d88_3d60_c6dd_b078_1fe7bc382d14_SM2027_00 Comment on these results, bearing in mind that all values of income above 16 (thousand dollars) correspond to Y = 1 and all values of income below 16 correspond to Y = 0. A priori, what would you expect in such a situation

Basic Econometrics 5th Edition by Damodar Gujarati,Dawn Porter

Edition 5ISBN: 978-0073375779

Basic Econometrics 5th Edition by Damodar Gujarati,Dawn Porter

Edition 5ISBN: 978-0073375779

Exercise 2

For the home ownership data given in Table 15.1, the maximum likelihood estimates of the logit model are as follows:

Comment on these results, bearing in mind that all values of income above 16 (thousand dollars) correspond to Y = 1 and all values of income below 16 correspond to Y = 0. A priori, what would you expect in such a situation

Explanation

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