Jinkyu Ha PS#6
Exercise 1.
(a)
•
faminc
 faminc has a positive estimated effect on ecolbs.
When family income increases by $1,000, a
predicted ecolbs increases by 0.0022lbs, holing other things constant, which is a negligible effect, and
it is not statistically significant based on pvalue of 0.429.
•
regprc
 regprc has a positive estimated effect on ecolbs.
When regprc increases by $1 per lb, a predicted
ecolbs increases by 3.04lbs, holding other things constant, and there is statistical evidence that regprc
has effect on ecolbs based on pvalue of 0.
•
ecoprc
 ecoprc has a negative estimated effect on ecolbs.
When ecoprc increases by $1 per lb, a predicted
ecolbs decreases by 2.89lbs, holding other things constant, and there is statistical evidence that ecoprc
has effect on ecolbs based on pvalue of 0.
(b)
In model 1, the changes of quantity of organic apples purchased with the explanatory variable
changes.
In model 2, the changes in probability of purchasing any organic apples as the explanatory
variable changes.
(c)
•
faminc
 When faminc increases by $1,000, the probability of purchasing any organic apples increases by
0.063%, holding other things constant, but since the coefficient of faminc is nearly zero, it is a
negligible effect, and it is not statistically significance based of pvalue of 0.233.
•
regprc
 When regprc increases by $1 per lb, the probability of purchasing any organic apples increases by
74.2%, holding other things constant, and there is statistical evidence that regprc has effect on ecobuy
based on pvalue of 0.
•
ecoprc
 When ecoprc increases by $1 per lb, the probability of purchasing any organic apples decreases by
82.8%, holding other things constang, and there is statistical evidence that ecoprc has effect on ecobuy
based on pvalue of 0.
The probability should be predicted in a range of 0 and 1, but this model can predict the probabilities
of above 1 or below zero.
(d)
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 Spring '11
 elizabeth
 Statistics, Statistical significance, faminc, statistical evidence

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