analyze nominal dependent variables

analyze nominal dependent variables

· Here is an introductory/survey video of Logit Analysis, which allows us to analyze nominal dependent variables. Regression only allow us to work with continuous variables.

Video: Introduction to Logit Analysis: https://youtu.be/ANi_PpkTSJA

Note: This Extra Credit Assignment is a bit tougher than the other ones, so it is worth a bonus of up to 10% of the final grade if you get everything right. The other assignments are worth 7% each.

· After watching the video, try this extra credit assignment: Prompt: Answer Part 1, Part 2, and Part 3. Given the following coefficients from a logit analysis, and the sample data values given for two respondents, calculate the probability of a person liking a dark-colored imported car over a light-colored imported car. Your answers are probabilities. Show your work. Use Word or PDF format for submission to Turnitin.com (link below). You may need to hand-write the formula and show your work on paper, then photograph or scan it into a file. That’s OK, but typing it into Word is preferred, if you can figure it out.

The Dependent Variable (DV) is “Prefers Dark colored imported car.” This measure is labeled”PrefDark” in the data = 0 if preference is for a light colored car, = 1 if preference is for a dark-colored car.

Here are the Independent Variables (IVs): Age in years (no intervals – labeled “Age” in the data)

Gender (measure is labeled “Gender” in the data) = 0 if male, = 1 if female.

Education level (measure is labeled EducLevel in the data) = 0 if completed high school only = 1 if completed Associate’s degree (Community College) = 2 if completed Undergraduate degree (BA or BS) = 3 if completed a Graduate degree

Income per year (in Euros, measure is labeled Income))

Consider, also, these coefficients for each measure (data point), calculated by running a Logit analysis on the data sample for the DV, PrefDark:

Coefficients and Constant Age 0.101 Gender 0.34 EducLevel –5.1 Income 0.000142 Constant 3.22

Assume all coefficients and the constant are statistically significant (you can’t ignore them).

Part 1 (4 points): Now consider this person, Respondent 1: Age = 24 Gender = 1 (female) EducLevel = 2 (Undergraduate degree) Income/year = Euros 38000 What is the probability this person prefers a dark-colored imported car?

Part 2 (4 points): Additionally, consider this other person, Respondent 2: 54 year old male, with a graduate degree, earning Euros 58000 per year. What is the probability this person prefers a dark-colored imported car?

Hint: Use the formula given in the video for calculating P(Yi=yi).

Show your work, please.

Part 3 (2 points) Which Respondent has a higher probability of preferring a dark-colored car? This is quite straightforward if you have Parts 1 and 2 correct.