Model | Income sources | Regression diagnostics | Assumptions tested |
---|---|---|---|
Logit model | All sources of income | Ramsey RESET test | Functional misspecification |
Hosmer-Lemeshow test | Goodness of fit | ||
Ordinary least squares* | Total income, salary, occupational risk allowance and user fees | Shapiro-Wilk test | Normality of residuals |
Ramsay RESET test | Functional misspecification | ||
Breusch-Pagan/Cook Weisberg test | Homoskedasticity | ||
VIF test | Multicollinearity |