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Here are the results obtained for Ordinal model (LPM, LOGIT, PROBIT) and Dummy variable model (LPM, LOGIT, PROBIT). Compare the results of both models and identify which model is suitable. Explain the reason. (12 marks)

Ordinal Probit Dependent Variable: E FINANCE Method: ML - Binary Probit (New to n-Raphson/Marquardt steps) Date: 07/25/21 Tim e: 15:40 Sample: 1 300 Included observations: 300 Convergence achieved after 4 iterations Coefficient covariance computed using observed Hessian Variable Coefficient Std. Error Z-S ta tis tic Prob AGE_GROUP EDUCATIONAL_LEVEL SELFEFFICACY TECHNOLOGY -3.237123 0.056597 0.177467 0.881624 0.134366 0.620554 0.100294 0.112555 0.159916 0.18 8484 -5.21 6503 0.56 4311 1.576717 5.513029 0.71 2879 0.0000 0.5725 0.1149 0.0000 0.4759 McFadden R-squared S.D.dependent var Aka ike info criterion Schwarz criterion Hannan. Quinn criter. Restr. deviance LR statistic Prob (LR statistic) 0.35 3867 0.417176 0.71 9649 0.781379 0.744354 318.6568 112.7620 0.000000 Mean dependent var S.E of regression Sum squared resid Log like lihood Deviance Restr. log likelihood Avg. log likelihood 0.7766 67 0.326774 31.50049 - 102.9474 205.89 48 -159.3284 -0.343158 67 Total obs 300 Obs with Dep = 0 Obs with Dep= 1 233 Dummy Variable with LPM Dependent Variable: E. FINANCE Method: Least Squares Date: 07/31/21 Time: 16:16 Sample: 1 300 Included observations: 300 Variable Coefficient Std. Error t-Statistic Prob AGE GROUP DUMMY STPM_OLE VEL_FOUNDATION DUMMY DIPLOMA DUMMYBACHELOR DEGREE SELF EFFICACY TECHNOLOGY -0.283338 0.009221 0.052286 0.128 222 0.145329 0.222 372 0.028 890 0.202270 0.022545 0.157427 0.158 49 7 0.156914 0.029134 0.036210 -1.400792 0.409024 0.332129 0.808 986 0.926170 7.632797 0.797 846 0.1623 0.6828 0.740 0 0.4192 0.3551 0.0000 0.4256 R-squared Adjusted R-squared S.E. of regression Sum squared resid Log likelihood Fstatistic Prob (F-statistic) 0.372113 0.359 255 0.333935 32.67314 -93.09719 28.94076 0.000000 Mean dependent var S.D. dependent var Akaike in fo criterion Schwarz criterion Hannan-Quinn criter. Durbin - Watson stat 0.776667 0.417176 0.667315 0.753736 0.701901 1.868084 Ordinal Logit Dependent Variable: E FINANCE Method: ML - Binary Logit (Newton-Raphson / Marquardt steps) Date: 07/25/21 Time: 15:38 Sample: 1 300 Included observations: 300 Convergence achieved after 6 iterations Coefficient covariance computed using observed Hessian Variable Coefficient Std. Error Z- Statistic Prob AGE_GROUP EDUCATIONAL LEVEL SELF_EFFICACY TECHNOLOGY -5.821707 0.108 311 0.326477 1.538 360 0.276992 1.182647 0.179912 0.210102 0.28 9402 0.333291 -4.922606 0.602024 1.553898 5.3156 44 0.831081 0.0000 0.5472 0.1202 0.0000 0.4059 McFadden R-squared S.D. dependent var Akaike info criterion Schwarz criterion Hannan-Quinn criter. Restr. deviance LR statistic Prob(LR statistic) 0.354557 0.417176 0.718916 0.780645 0.743620 318.6568 112.9820 0.000000 Mean dependent var S.E. of regression Sum squared resid Log likelihood Deviance Restr. log like lihood Avg. log likelihood 0.776667 0.326300 31.40918 - 102.8374 205.6747 -159.3284 -0.342791 Total obs 300 Obs with Dep=0 Obs with Dep=1 67 233 Dummy Variable with Logit Dependent Variable: E FINANCE Method: ML - Binary Logit (Newton-Raphson / Marquardt steps) Date: 07/31/21 Time: 16:17 Sample: 1 300 Included observations: 300 Convergence achieved after 4 iterations Coefficient covariance computed using observed Hessian Variable Coefficient Std. Error 2-Statistic Prob AGE_GROUP DUMMY STPM.O LEVEL_FOUNDATION DUMMYDIPLOMA DUMMYBACHELOR DEGREE SELF-EFFICACY TECHNOLOGY -6.609506 0.168520 0.772218 1.413032 1.579644 1.585278 0.266 587 1.823 082 0.185 504 1.255119 1.294114 1.282 519 0.294987 0.337 312 -3.625 457 0.908 445 0.615255 1.091892 1.231 673 5.374063 0.790328 0.0003 0.3636 0.5384 0.2749 0.2181 0.0000 0.4293 McFadden R-squared S.D. dependent var Akalke info criterion Schwarz criterion Hannan-Quinn criter. Restr. deviance LR statistic Prob(LR statistic) 0.361241 0.417176 0.725149 0.811 571 0.759 735 318.6568 115.1119 0.000000 Mean dependent var S.E. of regression Sum squared resid Log likelihood Deviance Restr. log likelihood Avg. log likelihood 0.776667 0.32 5544 31.05190 - 101.7724 203.5448 - 159.3284 -0.33 9241 Total obs 300 Obs with Dep=0 Obs with Dep= 1 67 233 Ordinal LPM Dependent Variable: E_FINANCE Method: Least Squares Date: 07/25/21 Time: 15:09 Sample: 1 300 Included observations: 300 Variable Coefficient Std. Error t-Statistic Prob. AGE_GROUP EDUCATIONAL_LEVEL SELF-EFFICACY TECHNOLOGY -0.235196 0.001927 0.035827 0.220375 0.030679 0.115964 0.021706 0.023313 0.029071 0.036162 -2.028179 0.088765 1.536810 7.580475 0.848361 0.0434 0.9293 0.1254 0.0000 0.3969 R-squared Adjusted R-squared S.E. of regression Sum squared resid Log likelihood F-statistic Prob(F-sta tis tic) 0.368120 0.359553 0.333 857 32.88090 -94.04799 42.96 529 0.000000 Mean dependent var S.D. dependent var Aka ike in fo criterion Schwarz criterion Hannan-Quinn criter. Durbin-Watson stat 0.776667 0.417176 0.660320 0.72 2050 0.685024 1.870230 Dummy Variable with Probit Dependent Variable: E FINANCE Method: ML - Binary Probit (Newton-Raphson / Marquardt steps) Date: 07/31/21 Tim e: 16:18 Sample: 1 300 Included observations: 300 Convergence achieved after 5 iterations Coefficient covariance computed using observed Hessian Variable Coefficient Std. Error Z-Statistic Prob. AGE GROUP DUMMY STPM_O LEVEL_FOUNDATION DUMMYDIPLOMA DUMMYBACHELOR-DEGREE SELF_EFFICACY TECHNOLOGY -3.599540 0.091894 0.356 881 0.733944 0.800 743 0.904525 0.125676 1.018 967 0.104841 0.743 868 0.760 532 0.751161 0.162198 0.190129 -3.532 539 0.876 513 0.479 764 0.965041 1.066008 5.576 673 0.661 005 0.0004 0.3808 0.6314 0.3345 0.2864 0.0000 0.5086 McFadden R-squared S.D. dependent var Aka ike info criterion Schwarz criterion Hannan-Quinn criter Restr. deviance LR statistic Prob(LR statistic) 0.360 367 0.417176 0.726 078 0.812 500 0.760 664 318.6568 114.8333 0.000000 Mean dependent var S.E. of regression Sum squared resid Log likelihood Deviance Restr. log likelihood Avg. log likelihood 0.776667 0.326245 31.18569 -101.9117 203.8234 -159.3284 -0.33 9706 Total obs 300 Obs with Dep=0 Obs with Dep= 1 67 233 Ordinal Probit Dependent Variable: E FINANCE Method: ML - Binary Probit (New to n-Raphson/Marquardt steps) Date: 07/25/21 Tim e: 15:40 Sample: 1 300 Included observations: 300 Convergence achieved after 4 iterations Coefficient covariance computed using observed Hessian Variable Coefficient Std. Error Z-S ta tis tic Prob AGE_GROUP EDUCATIONAL_LEVEL SELFEFFICACY TECHNOLOGY -3.237123 0.056597 0.177467 0.881624 0.134366 0.620554 0.100294 0.112555 0.159916 0.18 8484 -5.21 6503 0.56 4311 1.576717 5.513029 0.71 2879 0.0000 0.5725 0.1149 0.0000 0.4759 McFadden R-squared S.D.dependent var Aka ike info criterion Schwarz criterion Hannan. Quinn criter. Restr. deviance LR statistic Prob (LR statistic) 0.35 3867 0.417176 0.71 9649 0.781379 0.744354 318.6568 112.7620 0.000000 Mean dependent var S.E of regression Sum squared resid Log like lihood Deviance Restr. log likelihood Avg. log likelihood 0.7766 67 0.326774 31.50049 - 102.9474 205.89 48 -159.3284 -0.343158 67 Total obs 300 Obs with Dep = 0 Obs with Dep= 1 233 Dummy Variable with LPM Dependent Variable: E. FINANCE Method: Least Squares Date: 07/31/21 Time: 16:16 Sample: 1 300 Included observations: 300 Variable Coefficient Std. Error t-Statistic Prob AGE GROUP DUMMY STPM_OLE VEL_FOUNDATION DUMMY DIPLOMA DUMMYBACHELOR DEGREE SELF EFFICACY TECHNOLOGY -0.283338 0.009221 0.052286 0.128 222 0.145329 0.222 372 0.028 890 0.202270 0.022545 0.157427 0.158 49 7 0.156914 0.029134 0.036210 -1.400792 0.409024 0.332129 0.808 986 0.926170 7.632797 0.797 846 0.1623 0.6828 0.740 0 0.4192 0.3551 0.0000 0.4256 R-squared Adjusted R-squared S.E. of regression Sum squared resid Log likelihood Fstatistic Prob (F-statistic) 0.372113 0.359 255 0.333935 32.67314 -93.09719 28.94076 0.000000 Mean dependent var S.D. dependent var Akaike in fo criterion Schwarz criterion Hannan-Quinn criter. Durbin - Watson stat 0.776667 0.417176 0.667315 0.753736 0.701901 1.868084 Ordinal Logit Dependent Variable: E FINANCE Method: ML - Binary Logit (Newton-Raphson / Marquardt steps) Date: 07/25/21 Time: 15:38 Sample: 1 300 Included observations: 300 Convergence achieved after 6 iterations Coefficient covariance computed using observed Hessian Variable Coefficient Std. Error Z- Statistic Prob AGE_GROUP EDUCATIONAL LEVEL SELF_EFFICACY TECHNOLOGY -5.821707 0.108 311 0.326477 1.538 360 0.276992 1.182647 0.179912 0.210102 0.28 9402 0.333291 -4.922606 0.602024 1.553898 5.3156 44 0.831081 0.0000 0.5472 0.1202 0.0000 0.4059 McFadden R-squared S.D. dependent var Akaike info criterion Schwarz criterion Hannan-Quinn criter. Restr. deviance LR statistic Prob(LR statistic) 0.354557 0.417176 0.718916 0.780645 0.743620 318.6568 112.9820 0.000000 Mean dependent var S.E. of regression Sum squared resid Log likelihood Deviance Restr. log like lihood Avg. log likelihood 0.776667 0.326300 31.40918 - 102.8374 205.6747 -159.3284 -0.342791 Total obs 300 Obs with Dep=0 Obs with Dep=1 67 233 Dummy Variable with Logit Dependent Variable: E FINANCE Method: ML - Binary Logit (Newton-Raphson / Marquardt steps) Date: 07/31/21 Time: 16:17 Sample: 1 300 Included observations: 300 Convergence achieved after 4 iterations Coefficient covariance computed using observed Hessian Variable Coefficient Std. Error 2-Statistic Prob AGE_GROUP DUMMY STPM.O LEVEL_FOUNDATION DUMMYDIPLOMA DUMMYBACHELOR DEGREE SELF-EFFICACY TECHNOLOGY -6.609506 0.168520 0.772218 1.413032 1.579644 1.585278 0.266 587 1.823 082 0.185 504 1.255119 1.294114 1.282 519 0.294987 0.337 312 -3.625 457 0.908 445 0.615255 1.091892 1.231 673 5.374063 0.790328 0.0003 0.3636 0.5384 0.2749 0.2181 0.0000 0.4293 McFadden R-squared S.D. dependent var Akalke info criterion Schwarz criterion Hannan-Quinn criter. Restr. deviance LR statistic Prob(LR statistic) 0.361241 0.417176 0.725149 0.811 571 0.759 735 318.6568 115.1119 0.000000 Mean dependent var S.E. of regression Sum squared resid Log likelihood Deviance Restr. log likelihood Avg. log likelihood 0.776667 0.32 5544 31.05190 - 101.7724 203.5448 - 159.3284 -0.33 9241 Total obs 300 Obs with Dep=0 Obs with Dep= 1 67 233 Ordinal LPM Dependent Variable: E_FINANCE Method: Least Squares Date: 07/25/21 Time: 15:09 Sample: 1 300 Included observations: 300 Variable Coefficient Std. Error t-Statistic Prob. AGE_GROUP EDUCATIONAL_LEVEL SELF-EFFICACY TECHNOLOGY -0.235196 0.001927 0.035827 0.220375 0.030679 0.115964 0.021706 0.023313 0.029071 0.036162 -2.028179 0.088765 1.536810 7.580475 0.848361 0.0434 0.9293 0.1254 0.0000 0.3969 R-squared Adjusted R-squared S.E. of regression Sum squared resid Log likelihood F-statistic Prob(F-sta tis tic) 0.368120 0.359553 0.333 857 32.88090 -94.04799 42.96 529 0.000000 Mean dependent var S.D. dependent var Aka ike in fo criterion Schwarz criterion Hannan-Quinn criter. Durbin-Watson stat 0.776667 0.417176 0.660320 0.72 2050 0.685024 1.870230 Dummy Variable with Probit Dependent Variable: E FINANCE Method: ML - Binary Probit (Newton-Raphson / Marquardt steps) Date: 07/31/21 Tim e: 16:18 Sample: 1 300 Included observations: 300 Convergence achieved after 5 iterations Coefficient covariance computed using observed Hessian Variable Coefficient Std. Error Z-Statistic Prob. AGE GROUP DUMMY STPM_O LEVEL_FOUNDATION DUMMYDIPLOMA DUMMYBACHELOR-DEGREE SELF_EFFICACY TECHNOLOGY -3.599540 0.091894 0.356 881 0.733944 0.800 743 0.904525 0.125676 1.018 967 0.104841 0.743 868 0.760 532 0.751161 0.162198 0.190129 -3.532 539 0.876 513 0.479 764 0.965041 1.066008 5.576 673 0.661 005 0.0004 0.3808 0.6314 0.3345 0.2864 0.0000 0.5086 McFadden R-squared S.D. dependent var Aka ike info criterion Schwarz criterion Hannan-Quinn criter Restr. deviance LR statistic Prob(LR statistic) 0.360 367 0.417176 0.726 078 0.812 500 0.760 664 318.6568 114.8333 0.000000 Mean dependent var S.E. of regression Sum squared resid Log likelihood Deviance Restr. log likelihood Avg. log likelihood 0.776667 0.326245 31.18569 -101.9117 203.8234 -159.3284 -0.33 9706 Total obs 300 Obs with Dep=0 Obs with Dep= 1 67 233

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