Consider a probit model with an interaction term: Pr(y = 1|2) = (Bo+ Bi1+B202+ Bar1 x 2) %3D %3D a. What is marginal effect of r1? b. Now suppose B (1,-2, 3,-1) find the marginal effect of r if a = 0 and %3D 22 = 0. c. Now suppose B = (1,-2, 3,-1) find the marginal effect of r, if 0 and %3D T2 = 1. d. Now suppose B = (1,-2, 3,-1) find the marginal effect of a if r = 1 and %3D %3D 2 = 0. e. Now suppose B = (1,-2, 3,-1) find the marginal effect of a1 if a = 1 and %3D 2 = 1.

Algebra & Trigonometry with Analytic Geometry
13th Edition
ISBN:9781133382119
Author:Swokowski
Publisher:Swokowski
Chapter9: Systems Of Equations And Inequalities
Section9.9: Properties Of Determinants
Problem 46E
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Consider a probit model with an interaction term:
Pr(y = 1|r) = (Bo + B1r1+ B2r2 + Bza1 x r2)
a. What is marginal effect of r1?
b. Now suppose B = (1, -2,3,-1) find the marginal effect of r if r1 = 0 and
%3D
%3D
22 = 0.
c. Now
suppose 3 = (1, –2, 3,-1) find the marginal effect of r1 if r1 = 0 and
%3D
12 = 1.
d. Now suppose B = (1,-2, 3, –1) find the marginal effect of r if r, = 1 and
%3D
%3D
I2 = 0.
e. Now suppose B = (1,-2, 3,-1) find the marginal effect of ai if ri
T2 = 1.
1 and
Transcribed Image Text:Consider a probit model with an interaction term: Pr(y = 1|r) = (Bo + B1r1+ B2r2 + Bza1 x r2) a. What is marginal effect of r1? b. Now suppose B = (1, -2,3,-1) find the marginal effect of r if r1 = 0 and %3D %3D 22 = 0. c. Now suppose 3 = (1, –2, 3,-1) find the marginal effect of r1 if r1 = 0 and %3D 12 = 1. d. Now suppose B = (1,-2, 3, –1) find the marginal effect of r if r, = 1 and %3D %3D I2 = 0. e. Now suppose B = (1,-2, 3,-1) find the marginal effect of ai if ri T2 = 1. 1 and
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