Hi, guys.
For this week's problem set, please identify and write out the stochastic
and systematic components (as the problem set requests).
Here's a summary of the questions that have gone to the list about this
week's problem set:
For both 1 and 2, you should only simulate parameters once. You should
re-use those draws to calculate the different quantities of interest.
For 1c, change the interaction term when you change the relevant variable.
For 2a1, the systematic component is the standardized normal CDF with mean 0
(not mu) and sd = 1.
For 2, use PRESINC as the incumbency variable. Do *not* include INC in the
regression.
For 2c, remember to change the interaction term along with everything else.
For 2c3, this is the plot Gary went over in class today.
Again, you aren't allowed to use either Zelig or Clarify for this
assignment.
Yours,
Olivia