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Question 11.6 If you have question please message me
MemeTER 11 Regression with a Binary Dependent Variable11.5 Using the results in column (7):a. Akira is a man with 10 years of driving experience. What is the prob.ability that he will pass the test?b. Jane is a woman with 2 years of driving experience. What is the prob-ability that she will pass the test?c. Does the effect of experience on test performance depend on gender?Explain.11.6 Use the estimated probit model in Equation (11.8) to answer the followingquestions:a. A black mortgage applicant has a P/I ratio of 0.35. What is the prob-ability that his application will be denied?b. Suppose that the applicant reduced this ratio to 0.30. What effectould this have on his probability of being denied a mortgage?c. Repeat (a) and (b) for a white applicant.d. Does the marginal effect of the P/I ratio on the probability of mortgagedenial depend on race? Explain.Repeat Exercise 11.6 using the logit model in Equation (11.10). Are thelogit and probit results similar? Explain.Consider the linear probability model Y; = Bo + BIX; + up, wherePr(Yi = 1| Xi) = Bo + BIXi.a. Show that E(uil Xi) = 0.b. Show that varful vooo
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