A researcher is interested in finding out the factors affecting the probability that a candidate contesting the U.S general elections wins or not. Let Money denote the amount of money spent on campaigning (measured in million dollars) and let the binary variable candidate denote whether the candidate is a Democrat (candidate = 1) or a Republican (candidate= 0). The researcher collects a random sample of 250 individuals out of those who contested for the U.S general election in the year 2016, and estimates the following regression equation: Pr(Win = 1| Money, candidate) = (0.59 +0.76Money - 0.81 candidate). (0.75) (1.12) (1.11) The standard errors are given in parentheses. The binary dependent variable Win takes the value 1 if a candidate wins the election, and 0 otherwise, keeping Money and candidate constant. is the cumulative standard normal distribution function. The change in the predicted probability of a candidate winning when the amount of money spent on the election campaign increases from $1mn to $2mn, given that the candidate is a Democrat is (Round your answer to four decimal places.)
A researcher is interested in finding out the factors affecting the probability that a candidate contesting the U.S general elections wins or not. Let Money denote the amount of money spent on campaigning (measured in million dollars) and let the binary variable candidate denote whether the candidate is a Democrat (candidate = 1) or a Republican (candidate= 0). The researcher collects a random sample of 250 individuals out of those who contested for the U.S general election in the year 2016, and estimates the following regression equation: Pr(Win = 1| Money, candidate) = (0.59 +0.76Money - 0.81 candidate). (0.75) (1.12) (1.11) The standard errors are given in parentheses. The binary dependent variable Win takes the value 1 if a candidate wins the election, and 0 otherwise, keeping Money and candidate constant. is the cumulative standard normal distribution function. The change in the predicted probability of a candidate winning when the amount of money spent on the election campaign increases from $1mn to $2mn, given that the candidate is a Democrat is (Round your answer to four decimal places.)
College Algebra (MindTap Course List)
12th Edition
ISBN:9781305652231
Author:R. David Gustafson, Jeff Hughes
Publisher:R. David Gustafson, Jeff Hughes
Chapter8: Sequences, Series, And Probability
Section8.7: Probability
Problem 48E
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Transcribed Image Text:A researcher is interested in finding out the factors affecting the probability that a candidate contesting the U.S general elections wins or not.
Let Money denote the amount of money spent on campaigning (measured in million dollars) and let the binary variable candidate denote
whether the candidate is a Democrat (candidate = 1) or a Republican (candidate = 0). The researcher collects a random sample of 250
individuals out of those who contested for the U.S general election in the year 2016, and estimates the following regression equation:
Pr(Win = 1| Money, candidate) = (0.59 +0.76Money - 0.81 candidate).
(0.75) (1.12) (1.11)
The standard errors are given in parentheses. The binary dependent variable Win takes the value 1 if a candidate wins the election, and 0
otherwise, keeping Money and candidate constant. is the cumulative standard normal distribution function.
The change in the predicted probability of a candidate winning when the amount of money spent on the election campaign increases from
$1mn to $2mn, given that the candidate is a Democrat is
(Round your answer to four decimal places.)
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