{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

practice_questionsand notes

# practice_questionsand notes - Professor Tanya Molodtsova...

This preview shows pages 1–2. Sign up to view the full content.

Professor Tanya Molodtsova ECON 420 Office: Rich 319 Econometrics E-mail: [email protected] Fall 2011 Practice Questions 1 1. The following table contains Test Score in percentages and average Class Size for 3 school districts. Student Test Score Class Size 1 83 40 2 88 30 3 96 25 4. 87 32 5. 94 22 a) Estimate the linear relationship between GPA and ACT using OLS, that is, obtain the intercept and the slope estimates of the equation Test Score i = α + Class Size β i + u i b) Comment on the direction of the relationship. Interpret the coefficients. Does the intercept have a useful interpretation here? Why? By how much will the predicted Test Score increase, if Class Size increases by 5 students? c) Compute the fitted values and the residuals for each observation. Do the residuals approximately add up to zero? d) How much of the variation in Test Score for these 3 students is explained by Class Size?

This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document
2. The cost of attending your college has once again gone up. Although you have been told that
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

### Page1 / 2

practice_questionsand notes - Professor Tanya Molodtsova...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document
Ask a homework question - tutors are online