Factors affecting first home purchase The table summarizes results of a logistic regression model for predictions about first home purchase by young married households. The response variable is whether the subject owns a home (1 = yes, 0 = no). The explanatory variables are husband’s income, wife’s income (each in ten-thousands of dollars), the number of years the respondent has been married, the number of children aged 0–17 in the household, and an indicator variable that equals 1 if the subject’s parents owned a home in the last year the subject lived in the parental home.
a. Explain why, other things being fixed, the probability of home ownership increases with husband’s earnings, wife’s earnings, the number of children, and parents’ home ownership.
b. From the table, explain why the number of years married seems to show little evidence of an effect, given the other variables in the model.
Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.
You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.Read more
Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.Read more
Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.Read more
Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.Read more
By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.Read more