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Unformatted text preview: determining the direction of causality, write a linear equation that relates the two variables. Next, use the Excel shortcuts “INTERCEPT” and “SLOPE” to caluclate β and 1 . b) In the model from part a), list two factors that are in the error term and explain how they influence graduation rates. c) Interpret and 1 . d) Find the predicted value and residual for Holy Cross. Why do you think the regression line under-predicts Holy Cross’s graduation rate? 3. Do Newbold, et al. problem 4.3 on page 87, and add this part: d) Show that B B A B A = ∩ ∪ ∩ ) ( ) ( Note the sample space for 4.3 is given above problem 4.1....
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This note was uploaded on 04/29/2008 for the course ECON 249 taught by Professor Baumann during the Spring '08 term at Holy Cross (MA).
- Spring '08