A binomial logit model is estimated to determine the purchase of a house using a bank loan in a selected suburb in South

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A binomial logit model is estimated to determine the purchase ofa house using a bank loan in a selected suburb in South Africa. Thepurchase of a house using a bank loan is a binary variable with Y=1for purchasing and zero otherwise. The number of households is 100.The estimated binomial logit model is given by 𝐿𝐿�𝑖𝑖 𝐿𝐿�𝑖𝑖 = 0.55 +0.57𝐿𝐿𝐿𝐿𝐿𝐿𝐸𝐸𝑖𝑖 + 0.112𝐿𝐿𝐿𝐿𝐿𝐿𝐴𝐴𝑖𝑖 + 1.352𝐻𝐻𝑖𝑖 + 0,452𝑇𝑇𝑖𝑖 −1.452𝑅𝑅𝑖𝑖 z = (−0.73) (2.97) (1.97) (12.567) (-1.98) (-1.98)McFadden R2 = 0.3507 LR statistics = 9.6073 Prob (LR statistics) =0.027 Where: 𝐿𝐿𝐿𝐿𝐿𝐿 denotes logarithm 𝐸𝐸𝑖𝑖= household earnings𝐴𝐴𝑖𝑖= Savings account balance (Rands) 𝐻𝐻𝑖𝑖 = 1 job has a housingallowance and zero, otherwise 𝑇𝑇𝑖𝑖 = Number years of education ofthe household. 𝑅𝑅𝑖𝑖= 1 if bad credit rating assessment and zerootherwise. 2.1 Interpret the estimated coefficients in the model.(5) 2.2 Assuming all other factors in the model remain constant(ceteris paribus), calculate: i. The probability that a householdwith earnings of R10 000 will own a house? (4) ii. The rate ofchange of probability at the earnings level of R10 000? (2) 2.3Statistically determine whether all variables jointly are importantdeterminants for the purchase of a house. Clearly outline the steps(4) 2.4 Explain how you can use regression restrictions todetermine the impact of explanatory variables on the purchase of ahouse. You can use any of the variables given. Clearly outline thesteps (5)