Econometrics assignment Example | Topics and Well Written Essays - 1250 words

Econometrics - Assignment ExampleIn this case, the cumulative chance is 0.7049. This implies that the coefficient is at least -20 (100 - 70.5) = 29.5% of the time.We now test the probability that the obtained t-score with 11982 degrees of freedom is greater than 0.5385. Using the t-tables, we obtain the one-tailed p- judge as 0.2951. Since this value is greater than the default level of significance (0.05) for the test, we fail to reject the null hypothesis. We establish that the value of the coefficient is non greater than -20 at the 5% level of significance.From the equations, we now determine whether students whose home language is not English are more or less likely to read manufacturing compared to those who read illustration at home. Firstly, we realize that the introduction of the protean fiction in the second model improves the value of R2 from 0.02 to 0.204. This indicates that the variable alone accounts for (0.204 0.02) = 18.4% of the variability in the reading score s. We take the odds ratio approach. We apply the formulaAgain, well everyone in the sample who does not speak English at home reads fiction. The ratio of fiction readers from the dickens categorizations is 11, implying neither of the groups commands higher fiction reading likelihoods than the other.In the variable fiction were to be rive into constituent components based on the likert scale rankings earlier used, such that fict5 indicates I like reading fiction very much and so on, we would have to change the variable responses from scale to dummies. We assume that if an individual who, express responding to fict5 mentions that they do not like reading fiction very much will be accorded 0 for the response, and 1 for I like reading fiction very much. The variable fict3 is the transition amidst responses that affirm or disaffirm the proposal/ question. This is highlighted by the fact that the scale used has 5 points, providing for