Suppose you estimate a logit model explaining the probability of entering the labor force and you get the following estimated coefficients $Lab\widehat {or ~F}orce _ { i } = 4.83 + 1.27 \text { Education } _ { i } - 3.06 \text { Female } _ { i } + 2.91 \text { Children Under 6} _ { i }$
You should conclude that
A)men are estimated to be 306 percent more likely than women to enter the labor force.
B)that a higher education level increases the probability of being in the labor force.
C)each additional year of education increase the likelihood of entering the labor force by 483 percent.
D)men are estimated to be 3.06 percent more likely than women to enter the labor force.

Question

Suppose you estimate a logit model explaining the probability of entering the labor force and you get the following estimated coefficients $Lab\widehat {or ~F}orce  _ { i } = 4.83 + 1.27 \text { Education } _ { i } - 3.06 \text { Female } _ { i } + 2.91 \text { Children Under 6} _ { i }$
You should conclude that
A)men are estimated to be 306 percent more likely than women to enter the labor force.
B)that a higher education level increases the probability of being in the labor force.
C)each additional year of education increase the likelihood of entering the labor force by 483 percent.
D)men are estimated to be 3.06 percent more likely than women to enter the labor force.

Quizplus · Accepted Answer

The coefficient for Education is positive (1.27) which implies that higher education levels increase the probability of being in the labor force. None of the other coefficients suggest any of the conclusions in the other answer choices are true.

Suppose You Estimate a Logit Model Explaining the Probability of Entering