Scribd Logo
Upload

Welcome to Scribd!

  • 6 views

    Exercise 6

    Uploaded by

    品未
    1

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd

    Exercise 6

    Uploaded by

    品未
    6 views4 pages
    1

    Copyright

    © © All Rights Reserved

    Available Formats

    PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    1

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    6 views4 pages

    Exercise 6

    Uploaded by

    品未
    1

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    You are on page 1of 4

    Exercise 6

    1. For what dependent variable should a Poisson regression model be considered?


    a) Satisfaction with job
    b) GPA (grade point average)
    c) Number of mobile phones owned by a household
    d) Level of education completed

    2. What is the difference between count data and ordered data?


    a) There is no difference, they are two names for the same thing
    b) In count data the dependent variable is an integer that represent a measurement; in
    ordered data it represents a rank
    c) Ordered data can be continuous while count data are discrete
    d) Count data indicate ranking while ordered data are categorical

    3. For which distribution is the mean equal to the variance?


    a) Standard normal
    b) Binomial
    c) Poisson
    d) Chi-square

    4. When using least squares to estimate a model with a censored dependent variable,
    the results are
    a) Biased and inconsistent
    b) Unbiased, but not minimum variance
    c) Unbiased and consistent

    RAO, YAO ECON312 1


    d) Biased but consistent

    5. When a substantial proportion of the observations for a dependent variable take on a


    limiting value, such as zero, the data is said to be
    a) Truncated
    b) Qualitative
    c) Categorical
    d) Censored

    6. When is a Tobit model used?


    a) When you have censored data
    b) For categorical data with a normally distributed error term
    c) When you want to combine a probit and multinomial logit
    d) To estimate varying marginal effects in a binary choice model

    7. What is accomplished by using a Tobit model rather than the least squares
    estimator?
    a) It generate unbiased and consistent estimates on censored data
    b) It corrects sample selection bias
    c) It allows for choice models to be estimated using GLS
    d) It generates the same unbiased coefficient estimates, but with smaller variances

    8. When should a Heckit model be used?


    a) When the sample was not randomly selected
    b) When the sample is small and error terms are not normally distributed
    c) As the alternative model to run a Hausman test on a Tobit model

    RAO, YAO ECON312 2


    d) To minimize the variance of the error term when the sample selection process is
    suspect

    9. What type of model consists of a two-stage process where the first stage is a binary
    choice model of sample selection and the second stage is the linear model of interest?
    a) Tobit
    b) Heckit
    c) Multinomial logit
    d) Probit

    10. Researchers are interested in which factors that influence the demand for medical
    care for the elderly, which has been investigated in “Demand for medical care by the
    elderly: A finite mixture approach” published in the Journal of Applied Econometrics in
    1997. The data is obtained from a survey that contains 4406 Americans over 66 or
    older. The Poisson regression is estimated explaining the number of doctor visits in the
    past year as a function of the following explanatory variables:

    INCOME = family income in $1000);


    MALE =1 if individual is male);
    EXHLTH =1 if individual claims to be in excellent health);
    AGE =age in years (divided by ten)
    MARRIED =1 if individual is married);
    INSURE =1 if individual has private health insurance).

    The estimated coefficients are as follows:


    Poisson Results for Demand For Medical Care Data

    Variable Coefficient Probability (P-value)


    INTERCEPT 1.78 0.00
    INCOME 0.004 0.08
    MALE -0.09 0.00
    EXHLTH -0.49 0.00
    AGE -0.03 0.00
    MARRIED -0.06 0.00
    INSURE 0.29 0.00

    RAO, YAO ECON312 3


    a) Based on the output in the above table, are the signs of explanatory variables
    consistent with your expectation? Explain.

    b) Write out the model you have estimated based on the output

    c) Predict the number of doctor visits for a married elderly woman who is 70 and
    in excellent health and does have private health insurance with the family income
    of $30,000.
    d) Calculate the probability that the woman in c) would have doctor visits 4 times
    or more in the year.

    e) What is the marginal effect of a change in INCOME on the numbers of doctor


    visits? How do you interpret it?

    RAO, YAO ECON312 4

    You might also like