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Economics

3. A researcher has estimated the likelihood of divorce: D = Bo + Â1CAT? + B2EDU; + B3KID; + BAMAR+ BAGE; where D;= dummy equal 1 if person ? files for divorce CATi = dummy equal 1 if person i is Catholic EDUi = years of education for person i KID; = number of kids person i has MARi = number of years person i has been married to a current spouse AGE; = person i age
a. Interpret D. (1)

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Answer.

\widehat{D{\color{Red} }}I is dependent variable, which informs that how the effect of  explanatory factors can effect the likelihood of divorce case. Here, \widehat{D{\color{Red} }} I is the effect on divorce case if person is catholic and files for divorce. As well as other explanatory variables are included which effect the likelihhod of divorce case , years of eduction by person i , number of kids person i has, number of years person i has married to current spouse and age of a person.

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