Suppose You Estimate a Logit Model Explaining the Probability of Entering

question 26

Multiple Choice

Suppose you estimate a logit model explaining the probability of entering the labor force and you convert the estimated coefficients into the following estimated marginal effects $Lab\widehat {or ~F}orce _ { i } = 1.67 + 0.42 \text { Education } _ { i } - 3.06 \text { Female } _ { i } + 2.91 \text { Children Under 6} _ { i }$
You should conclude that

• A)men are estimated to be 306 percent more likely than women to enter the labor force.
• B)men are estimated to be more likely than women to enter 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.

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Definitions:

Interest Payments

The payments made by a borrower to a lender for the use of borrowed money, typically expressed as an annual percentage of the loan amount.

Debt at Maturity

Debt at Maturity refers to the total amount, including principal and any accumulated interest, that must be repaid at the end of a loan's term.

Return on Equity

A measure of a corporation's profitability that reveals how much profit a company generates with the money shareholders have invested.

Profitability of Assets

Profitability of Assets assesses how effectively a company uses its assets to generate profits, typically measured as a ratio of net income to total assets.