Working Paper Series: Special Edition of 2016 to 2018 Interns

Diagnostics Model 2 Full Sample

Table. 15 F-Test Baseline Logit Null Hypothesis:β1- β17=0 Alternative Hypothesis: Not H o

P-Value

Decision

F-Statistic

0.001***

The some of the coefficients are close to or equal to zero as such removing them from the model would not affect the models predictability power.

* p<0.1, ** p<0.05, *** p<0.01 Table. 16 Goodness of Fit Test Null Hypothesis: The Model is Correctly Specified Alternative Hypothesis: The Model is incorrectly Specified P-Value

Decision

Pearson χ 2

0.2951

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

Hosmer-Lemeshow

0.5199

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

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