The variable “langscore” (language score) is statistically significant. Interpreation: . A unit increase in language score leads to a 0.71 increase in predicted achievement.
One of the indicator variables for prog is also statistically significant (reference program: general).
. Compared to general programs, academic programs are about 4.07 higher.
model <- truncreg(achiv ~ langscore + prog, data = dat, point = 40, direction = "left")
summary(model)
Call:
truncreg(formula = achiv ~ langscore + prog, data = dat, point = 40,
direction = "left")
BFGS maximization method
57 iterations, 0h:0m:0s
g'(-H)^-1g = 2.5E-05
Coefficients :
Estimate Std. Error t-value Pr(>|t|)
(Intercept) 11.29942 6.77173 1.6686 0.09519 .
langscore 0.71267 0.11446 6.2264 4.773e-10 ***
progacademic 4.06267 2.05432 1.9776 0.04797 *
progvocation -1.14422 2.66958 -0.4286 0.66821
sigma 8.75368 0.66647 13.1343 < 2.2e-16 ***
---
Signif. codes: 0 '***' 0.001 '**' 0.01 '*' 0.05 '.' 0.1 ' ' 1
Log-Likelihood: -591.31 on 5 Df
We saw that compared to general programs, academic programs are about 4.07 higher in achievement. To determine if program itself is statistically significant, we can test models with and without it for the two degree-of-freedom test of this variable using a likelihood ratio test (LRT). The LRT is associated with a p-value of 0.0252, indicating that the overall effect of prog is statistically significant.
'log Lik.' 0.02516651 (df=3)