EEP PS#6 - Jinkyu Ha PS#6 Exercise 1. (a) 1 faminc - faminc...

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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 p-value 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 p-value 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 p-value 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 p-value 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 p-value 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 p-value 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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EEP PS#6 - Jinkyu Ha PS#6 Exercise 1. (a) 1 faminc - faminc...

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