1) Show that

Ə𝑃𝑅[𝑟𝑒𝑠𝑝 =1] ƏPr[𝑟𝑒𝑠𝑝=0]

+ =0
Ə𝑎𝑔𝑒 Ə𝑎𝑔𝑒
Ə𝑃𝑅[𝑟𝑒𝑠𝑝 =1] ƏPr[𝑟𝑒𝑠𝑝=0] Ə𝑃𝑅[𝑟𝑒𝑠𝑝=1] 1−ƏPr[𝑟𝑒𝑠𝑝=1] Ə𝑃𝑅[𝑟𝑒𝑠𝑝=1]
+ = + =
Ə𝑎𝑔𝑒 Ə𝑎𝑔𝑒 Ə𝑎𝑔𝑒 Ə𝑎𝑔𝑒 Ə𝑎𝑔𝑒
ƏPr[𝑟𝑒𝑠𝑝=1]
- =0
Ə𝑎𝑔𝑒

2) Assume that you recode the dependent variable as follows:

respnewi=−respi+1. Hence, positive response is now defined to
be equal to zero and negative response to be equal to 1. Use
the odds ratio to show that this transformation implies that
the sign of all parameter’s changes.

Pr[𝑟𝑒𝑠𝑝𝑛𝑒𝑤 =0 Pr[𝑟𝑒𝑠𝑝=1]
=
Pr[𝑟𝑒𝑠𝑝𝑛𝑒𝑤 =1] Pr[𝑟𝑒𝑠𝑝=0]

Using this result, we can see that the odds ratios are the reciprocal from the
original model, thus:
Pr[𝑟𝑒𝑠𝑝=1] 1
=
Pr[𝑟𝑒𝑠𝑝=0] exp(𝛽𝑜+ ∑𝑘
𝑖=2 𝐵𝑗𝑋𝑗𝑖)

𝑘
Pr[𝑟𝑒𝑠𝑝 𝑛𝑒𝑤 = 0
= exp(−𝛽𝑜 − ∑ 𝐵𝑗𝑋𝑗𝑖)
Pr[𝑟𝑒𝑠𝑝 𝑛𝑒𝑤 = 1]
𝑖=2

3) Consider again the odds ratio positive response versus

Pr[𝑟𝑒𝑠𝑝=1]
= exp(β0 + β1 malei + β2activitei + β3agei + β4(agei/10)2)
Pr[𝑟𝑒𝑠𝑝=0]
During lecture 5.5 you have seen that this odds ratio obtains its
maximum value for age equal to 50 years for males as well as females.
Suppose now that you want to extend the logit model and allow that
this age value is possibly different for males than for females. Discuss
how you can extend the logit specification
Results
Dependent variable:
response
male -2.142
(1.828)
activity 0.939***
(0.186)
age -0.017
(0.058)
I((age/10)2) 0.016
(0.054)
I(male * age) 0.133*
(0.073)
I(male * (age/10)2) -0.132*
(0.069)
Constant -0.477
(1.458)
Observations 925
Log Likelihood -600.041
Akaike Inf. Crit. 1,214.082
Note: p<0.1; p<0.05; p<0.01