practice_questionsand notes

practice_questionsand notes - Professor Tanya Molodtsova...

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Professor Tanya Molodtsova ECON 420 Office: Rich 319 Econometrics E-mail: tmolodt@emory.edu 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?
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2. The cost of attending your college has once again gone up. Although you have been told that
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This note was uploaded on 11/20/2011 for the course ECON 420 taught by Professor Silous during the Spring '11 term at Emory.

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practice_questionsand notes - Professor Tanya Molodtsova...

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