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HW4_S2010

# HW4_S2010 - Problem Set 4 Due Tuesday at the beginning of...

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Problem Set 4 - Due Tuesday 04/06/10 at the beginning of class Econ 3200 - Introduction to Econometrics Spring 2010 Cornell University Prof. Molinari 1. Problems 4.2 and 4.4 in Wooldridge. 2. Students that regularly skip lectures could be expected to have lower grade point averages consider the following regression model for college GPA: colGPA i = & 0 + 1 hsGPA i + 2 ACT i + 3 skipped i + u i where colGPA is the college GPA of a student, hsGPA is the high school GPA of a student, ACT is the ACT test score and skipped is the number of lectures missed per week. The following estimated regression was obtained from a sample of 141 college students: d colGPA i = 1 : 39 + 0 : 412 hsGPA i + 0 : 015 ACT i & 0 : 083 skipped i R 2 = 0 : 234 (0 : 33) (0 : 094) (0 : 011) (0 : 026) Standard errors are in parentheses. (a) How well does the ACT test predict success in college holding high school GPA and skipped lectures constant? (b) Is the coe¢ cient on the skipped variable statistically signi±cant? What is the p -value for testing H 0 : 3 = 0 ? (c) By skipping one extra lecture per week, what is the impact on average to a student²s GPA? Does skipping class have a major e/ect on a student²s GPA? (d) On average, do students with a 4.0 high school GPA end up with a 4.0 college GPA?

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HW4_S2010 - Problem Set 4 Due Tuesday at the beginning of...

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