My logistic model's dependent variable is cost/benefit ratio of an investment. It takes value ''1'' if c/b ratio>=1 and ''0'' if ratio<1. independents are REGION (takes value ''1'' if investment includes one region, and ''0'' if two or more regions), TYPE (''1'' if its new investment and ''0'' otherwise) SECTOR (manufacturing, agriculture and serving -serving is base category). responses (1) if an investment’s cost/benefit ratio≥1 and (0) if c/b ratio<1.

When constant term included, the model cannot be estimated because of endless iterations saying ''no convergence'' When constant excluded, all parameters are significant at %5 and %10, prob>chi2=0.0082 wald(4)=13.74.

It’s clear that constant term is not good for my model. As far as i understand, cost/benefit ratio may not exist under the assumption all independents equal to zero. But how can i run this model in STATA? how could i interpret the coefficients and Which statistics or goodness of fit measure should i use for evaluating the significance of model the model without constant term? And what happens to logit model without constant (respect to the convergence error)?

Thanks for now. ]]>

I need to run a factor analysis on a few nominal variables. They have no defined order, therefore, I cannot use polychoric correlations to create a matrix. My variables are coded such that:

1- respondent

2- husband

3- In laws

and so on. I have eight variables and will need to determine:

1. How many factors

2. The best way to code these variables

I am using Stata MP and my data set has over 10,000 individuals (household level data). Any help with how to run the factor analysis (Scree test, rotations etc) and interpret the results would be greatly appreciated.

Thank you very much. ]]>