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st: logit

From   "Rajiv Mallick" <>
Subject   st: logit
Date   Tue, 01 Oct 2002 16:04:16 -0500

I am running a LOGIT where all my independent variables are dummies. I get the expected signs for them. But its ability to separate 1 from 0 is extremely poor. In fact my estimated probability scores turn out to be between 0 and .33. One another piece of information that may help is that the split between 1 and 0 (dependent variable) is 0.022/1.... I have very few 1s.

So the questions are:

1. Anything that one should be concerned when working with only quantitative variables?
2. Any other ways of handling data where the dependent variable split is just 0.022/1 That is I have in 5710 observations I have 127 bad (=1) and 5583 good (=0).


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