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.

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
icon
Related questions
Question
None
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.
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.
Expert Solution
steps

Step by step

Solved in 2 steps

Blurred answer
Recommended textbooks for you
ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
Economics
ISBN:
9780190931919
Author:
NEWNAN
Publisher:
Oxford University Press
Principles of Economics (12th Edition)
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
Engineering Economy (17th Edition)
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
Principles of Economics (MindTap Course List)
Principles of Economics (MindTap Course List)
Economics
ISBN:
9781305585126
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Managerial Economics: A Problem Solving Approach
Managerial Economics: A Problem Solving Approach
Economics
ISBN:
9781337106665
Author:
Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:
Cengage Learning
Managerial Economics & Business Strategy (Mcgraw-…
Managerial Economics & Business Strategy (Mcgraw-…
Economics
ISBN:
9781259290619
Author:
Michael Baye, Jeff Prince
Publisher:
McGraw-Hill Education