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As a last exercise use the following commands to generate a graph of the predicted values:

. quietly logit ins hhincome

. predict plogit, pr

. quietly probit ins hhincome

. predict pprobit, pr

. quietly regress ins hhincome

. predict pols, xb

. summarize ins plogit pprobit pols

. sort hhincome

.twoway (scatter ins hhincome, msize(vsmall)) (line plogit hhincome, lcolor(blue) lpattern

>(solid)) (line pprobit hhincome, lcolor(red) lpattern(tight_dot)) (line pols hhincome,

>lcolor(green) lpattern(longdash_shortdash)), ytitle(Predicted Probability) xtitle(Household income)

Note: save file as a .tif file if you want to insert the graph directly into a word file.

Exercises

The determinants of physician advice. Physicians are expected to give lifestyle advice as a part of their normal interaction with their patients. Sometimes doctors choose not to comment on a patient’s lifestyle because they do not have time for personal comments, they feel the advice will be unwelcome, they feel that lifestyle choices are not any business of the physician, they find the discussion of lifestyle issues to be embarrassing, or they are not aware of the patient’s actual lifestyle choices. In this project we are interested in understanding when physicians choose to give advice concerning the consumption of alcohol.

The MS Excel file ktdata contains the responses to the 1990 National Health Interview Survey core questionnaire and special supplements from 2,467 males who were current drinkers in 1990. Individuals who are lifetime abstainers or who are former drinkers who have not consumed any alcohol in the past year are excluded from the sample. Table 7 contains the names and definitions of the variables collected in the survey.

Definition of the variables in the Excel Worksheet ktdata.
Variable Definition
Drinks Total number of drinks taken in the past two weeks
Advice Did your physician give you advice about alcohol consumption? Yes = 1, No = 0
Income Monthly income in $1,000 (there are 5 missing values denoted by a “.”)
Age30 Dummy variable equal to 1 if 30<Age ≤ 40and 0 otherwise
Age40 Dummy variable equal to 1 if 40<Age ≤ 50 and 0 otherwise
Age50 Dummy variable equal to 1 if 50<Age ≤ 60 and 0 otherwise
Age60 Dummy variable equal to 1 if 60<Age ≤ 70 and 0 otherwise
AgeGT70 Dummy variable equal to 1 if individual’s age is greater than 70 and 0 otherwise
Educ Number of years of schooling (0 to 18)
Black Dummy variable equal to 1 if the individual is a black and 0 otherwise
Other Dummy variable equal to 1 if the individual is non-white and non-black and 0 otherwise
Married Dummy variable equal to 1 if the individual is married and 0 otherwise
Widow Dummy variable equal to 1 if the individual is a widow and 0 otherwise
DivSep Dummy variable equal to 1 if the individual is either divorce or separated and 0 otherwise
Employed Dummy variable equal to 1 if the individual is currently employed and 0 otherwise
Unemploy Dummy variable equal to 1 if the individual is currently unemployed and 0 otherwise
NE Dummy variable equal to 1 if the individual lives in the Northeast US and 0 otherwise
MW Dummy variable equal to 1 if the individual lives in the Midwest US and 0 otherwise
South Dummy variable equal to 1 if the individual lives in the South and 0 otherwise
Medicare Dummy variable equal to 1 if the individual receives Medicare and 0 otherwise
Medicaid Dummy variable equal to 1 if the individual receives Medicaid and 0 otherwise
Champus Dummy variable equal to 1 if the individual has military insurance and 0 otherwise
HlthIns Dummy variable equal to 1 if the individual has health insurance and 0 otherwise
RegMed Dummy variable equal to 1 if the individual has a regular source of medical care and 0 otherwise
DRI Dummy variable equal to 1 if the individual sees the same doctor and 0 otherwise
MajorLim Dummy variable equal to 1 if the individual has limits on major daily activity and 0 otherwise
SomeLim Dummy variable equal to 1 if the individual has limits on some daily activity and 0 otherwise
Diabetes Dummy variable equal to 1 if the individual has diabetes and 0 otherwise
Heart Dummy variable equal to 1 if the individual has a heart condition and 0 otherwise
Stroke Dummy variable equal to 1 if the individual has had a stroke and 0 otherwise

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Source:  OpenStax, Econometrics for honors students. OpenStax CNX. Jul 20, 2010 Download for free at http://cnx.org/content/col11208/1.2
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