TABLE 17-11 A Logistic Regression Model Was Estimated in Order to Predict

question 128

Short Answer

TABLE 17-11
A logistic regression model was estimated in order to predict the probability that a randomly chosen university or college would be a private university using information on mean total Scholastic Aptitude Test score (SAT)at the university or college,the room and board expense measured in thousands of dollars (Room/Brd),and whether the TOEFL criterion is at least 550 (Toefl550 = 1 if yes,0 otherwise.)The dependent variable,Y,is school type (Type = 1 if private and 0 otherwise).
-Referring to Table 17-11,what is the p-value of the test statistic when testing whether Toefl500 makes a significant contribution to the model in the presence of the other independent variables?

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Definitions:

Marginal Analysis

An examination of the benefits and costs of one additional unit of change.

Economic Individuals

Persons or entities that make decisions to maximize satisfaction or profits, based on the principles of economics.

Bit More

A small additional amount or degree.

Opportunity Cost

The trade-off of not seizing the next most favorable opportunity when faced with a decision.