QUESTION 11 The variables in our dataset include the college grade point average (colGPA), high school GPA (hsGPA), and achievement test score (ACT) for a sample of 141 students from a large university; both college and high school GPAs are on a four-point scale. We estimate the following model by OLS: colGPA=B+B₂hsGPA+B ACT+u and obtain the following parameter estimates B₁ = 0.9, B2=0.7. B=0.01. Predict difference of college GPA s of two students (colGPAB - colGPAA) where the student B has a 0.3 points higher GPA in high school and 5 points lower ACT score compared to student A. The answer should be given up to 2 decimal spaces, e.g., 0.35, 0.23, 0.20, 1.23, etc.
QUESTION 11 The variables in our dataset include the college grade point average (colGPA), high school GPA (hsGPA), and achievement test score (ACT) for a sample of 141 students from a large university; both college and high school GPAs are on a four-point scale. We estimate the following model by OLS: colGPA=B+B₂hsGPA+B ACT+u and obtain the following parameter estimates B₁ = 0.9, B2=0.7. B=0.01. Predict difference of college GPA s of two students (colGPAB - colGPAA) where the student B has a 0.3 points higher GPA in high school and 5 points lower ACT score compared to student A. The answer should be given up to 2 decimal spaces, e.g., 0.35, 0.23, 0.20, 1.23, etc.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:QUESTION 11
The variables in our dataset include the college grade point average (colGPA), high school GPA (hsGPA), and achievement test score (ACT) for a sample of 141
students from a large university; both college and high school GPAs are on a four-point scale. We estimate the following model by OLS:
colGPA=B+B₂hsGPA+B ACT+u
and obtain the following parameter estimates B₁ = 0.9, B2=0.7. B=0.01. Predict difference of college GPA s of two students (colGPAB - colGPAA) where the
student B has a 0.3 points higher GPA in high school and 5 points lower ACT score compared to student A.
The answer should be given up to 2 decimal spaces, e.g., 0.35, 0.23, 0.20, 1.23, etc.
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