[sera] Applied Econometrics Tobit model Quiz for self-evaluation 1. The tobit model is appropriate to estimate. ‘a. Theannual spending in ight tickets with a sample of the general population...) F b. The monthly wage of unqualified workers, as a function of experience and age 20% of the workers in the sample earn the minimum legal wage... T, ¢. ‘The choice of profession among the various avalable alternatives 7 d. The number of annual hours worked by a sample of Spanish employed women. (EF 2. In the tabit model the estimates gf the beta coefficients use to be lower than in the equivalent OLS estimation iF (Gktke (Se 1-30) 3. We estimated a tobit model explaining annual spending in luxury goods (€1000) as a fanction of income (¥, in €1000). The estimated constant is 0.5, and the estimated beta coefficient of X is 0.02. The estimate of sigma is 10. Your annual income is 100.0006. According to the model, the estimated probability that you spend some money in luxury goodsis: Coe. os 0,02 ulowr Ly 2 3% db, 40% WB. AS ods 56% Ss 17 ao B( 4 (04S B, SSA > 56%o 4. Following with the previous model, according to the model you are expected to spend in luxury goods: : iz xe plas UB ETP: 1H) [eo 2 CG] Mowe Aes) © s7eHe, Yondronak” syeetinicn FOB. omwva sosae — = 0599 (hse tox 0,9 049)-[T7TH | OsS5 5. The marginal effect of an increase in your income in the probability of spending some money in luxury goods wil be 4 Bat elpcolsy, Ba p (Aye Wkaagnr = comrae © 003 Ox ae v : a 006 Se nee ea eS 7. We have estimated the following tobit model obit regrassion Number of obs = 660 UR ehi2(2) : 1.73 Beob > ohiz 0.0006 Log Likelihood = -1260.4096 Pacudo 22 0.0063 Coe. Std. Ber © Poje] [958 Cone. Interval]mi | “5.82943 1.572352 -3.71 0.000 8.916382 ~2.741978 x2 | 4.615171 1.30807 353 0.000 2.046677 7.183665, ons | -.7541937 8455831 0.890.373, 6.061728 7stgma | 4.788935 2041036 4.385163. 5.186708 Obs. suimary= 340 lete-cengared observations at ¥< 320 uncensored observations 0 right-cansored observations ‘The description of the sample is: oun y 1 x2 Moan std. Dev Min varisble | y| 60 -1,282323 2.90986 o S] 0B SBpe ciiee 2 h sso ilovisis “sa9ss73 ; rss “ oS nereansaontymne — 06 LaI7}_ B,\b (SS) sige re 2428 a. 04247 a? --29 b. -5.82943 7 6) 2.4758 Faz - 21909614 Teil None of the other results O4eu > WB. 0118985 #. Inthe model of question 7, the "scale factor" the average individual in sample is: @) 0.4247 - 5.82943 (2 - 0,424 ©. “24758 9 Fo d, There is no such scale factor in tobit models 9, Ifall individuals in sample have y>0, \Tobit estimates are the same as OLS estimates Tis better to apply the McDonnalds inequality c. PEAis the same as APE 4. Maximum likelihood estimates are inconsistent 10, In the tobit model the fitted values for E(ylx): a. Canbe positive or negative ® Aronot uncorrelated with the regression residuals (y- 9), differently to OLS © Area linear function of the X variables € of the other answers 7 (See Wootdaitye )