The Estimated Logit Regression in Your Textbook Is $\widehat{\operatorname { Pr } ( \text { deny } = 1 \mid \text { P/Iratio,black } )}$

question 47

Essay

The estimated logit regression in your textbook is $\widehat{\operatorname { Pr } ( \text { deny } = 1 \mid \text { P/Iratio,black } )}$ = F(-4.13 + 5.37 P/Iratio + 1.27 black)
Is there a meaningful interpretation to the slope for the P/I Ratio? Calculate the increase of a rejection probability for both blacks and whites as the P/I Ratio increases from 0.1 to 0.2. Repeat the exercise for an increase from 0.65 to 0.75. Why is the increase in the probability higher for blacks at the smaller value of the P/I Ratio but higher for whites at the larger P/I Ratio?

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