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Survival on the Titantic: Illustrating Wald and LM Tests for Proportions and Logits

Author

Listed:
  • Robert Dixon
  • William Griffiths

Abstract

Students are very interested in lecture examples and class exercises involving data connected to the maiden voyage and the sinking of the liner Titanic. Information on the passengers and their fate can be used to explore relationships between various tests for differences in survival rates between different groups of passengers. Among the concepts examined are tests for differences of proportions using a normal distribution, a chi-square test for independence, a test for the equality of two logits and a test for the significance of the coefficient of a binary variable in logit model. The relationship between Wald and LM test statistics is also examined. Two related examples are given, one to be used for step by step instructional purposes and one to be given as an exercise to students.

Suggested Citation

  • Robert Dixon & William Griffiths, 2006. "Survival on the Titantic: Illustrating Wald and LM Tests for Proportions and Logits," Department of Economics - Working Papers Series 964, The University of Melbourne.
    • Handle: RePEc:mlb:wpaper:964
    as

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    File URL: http://www.economics.unimelb.edu.au/downloads/wpapers-06/964.pdf
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    References listed on IDEAS

    as
    1. Don Leet & Scott Houser, 2003. "Economics Goes to Hollywood: Using Classic Films and Documentaries to Create an Undergraduate Economics Course," The Journal of Economic Education, Taylor & Francis Journals, vol. 34(4), pages 326-332, December.
    2. William E. Becker & Michael Watts (ed.), 1998. "Teaching Economics to Undergraduates," Books, Edward Elgar Publishing, number 1643.
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    More about this item

    Keywords

    Contingency table; Difference in proportions; Logit model; Statistical tests;
    All these keywords.

    JEL classification:

    • A22 - General Economics and Teaching - - Economic Education and Teaching of Economics - - - Undergraduate
    • A23 - General Economics and Teaching - - Economic Education and Teaching of Economics - - - Graduate
    • C12 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Hypothesis Testing: General
    • C25 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions; Probabilities

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