5.2. Example
As in the binomial case, let’s start with a real example. Several years ago, I did a survey of 195 undergraduates at the University of Pennsylvania in order to study the effects of parenting styles on altruistic behavior. One of the questions was “If you found a wallet on the street, would you (1) keep the wallet and the money, (2) keep the money and return the wallet, or (3) return both the wallet and the money.” The distribution of responses for the WALLET variable was:
| Value | Frequency | |
| 1 | 24 | keep both |
| 2 | 50 | keep money |
| 3 | 121 | return both |
Possible explanatory variables are
| MALE | 1= male, 0 = female |
| BUSINESS | 1=enrolled in business school, 0=otherwise |
| PUNISH | A variable describing whether student was physically punished by parents at various ages: |
| 1 = punished in elementary school but not middle or high school | |
| 2 = punished in elementary and middle school but not high school | |
| 3 = punished at all three levels. | |
| EXPLAIN | “When you were punished, did your parents generally explain why what you did was wrong?” |
| 1 = almost always, 0 = sometimes or never. |
In the next section we construct a multinomial logit model for the dependence of WALLET on the explanatory variables.
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