Working Paper Series: Special Edition of 2016 to 2018 Interns

Appendix 3A

Diagnostics Model 1 Full Sample

Table 13. F-Test Test Baseline Logit Null Hypothesis:β1- β16=0 Alternative Hypothesis: Not H o P-Value

Decision

F-Statistic

0.000***

The coefficients are not simultaneously equal to zero and improves the model’s fit by their inclusion.

* p<0.1, ** p<0.05, *** p<0.01

Table 14. Goodness of Fit Test Null Hypothesis: The Model is Correctly Specified Alternative Hypothesis: The Model is incorrectly Specified P-Value

Decision

Pearson χ 2

0.3120

There is insufficient evidence to reject the null, as such we conclude that the model is correctly specified. Like the Pearson goodness of fit test we conclude that there is insufficient evidence to reject the null at all conventional levels, hence the model is a good fit.

Hosmer-Lemeshow

0.1374

* p<0.1, ** p<0.05, *** p<0.01, Hosmer-Lemeshow 8 groups.

45