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I read a study that said a $4000 increase in annual family income resulted in a .15 higher probability that the children in the family would graduate High school at 19. Assuming that that if the high school graduation rate (prior to income increase) was 60%, then the graduation rate after the income increase will be 75%?

user111984
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  • Yes, that seems to be the claim made. It is a claim I would doubt, since it is not likely to be based on sound experimental procedures. But it is conceivable that the high school graduation rate among people with family income 16000 is $60%$, and the graduation rate among people with family income $20000$ is $75%$. That does not mean that raising family income by $4000$ would automatically produce the effect. And one would not expect a $0.15$ difference in probability between families with income $500000$ and families with income $504000$. – André Nicolas Nov 28 '13 at 06:40
  • Do you have the source? Might be worth checking the results table. Personally, I can't uniquely identify the statement. It might mean the school graduation rate increased by 15 percentage points (from 60% to 75$). Or it might mean it increased by 15% (from 60% to 60*1.15). – Nameless Nov 28 '13 at 15:14

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