Question 17.26

17.26 Log odds for high-tech and non-high-tech firms.

Refer to the previous exercise.

  1. Find the log odds for the high-tech firms. Do the same for the non-high-tech firms.
  2. Define an explanatory variable to have the value 1 for high-tech firms and 0 for non-high-tech firms. For the logistic model, we set the log odds equal to . Find the estimates and for the parameters and .
  3. Show that the odds ratio is equal to