Question

3. Estimating models with dummy variables Consider the following simple model of the college grade point average determination: colGPA = Bo + DPC + DihsGPA + B2ACT + u, colGPA = college GPA PC = personal computer (PC) ownership hsGPA = high school GPA ACT = achievement test score Suppose that in estimating this model, we obtain the following: colGPA = 1.26 + 0.16 PC + 0.447 hsGPA + 0.009 ACT

Answer 1

Answeh; mestimated model: Colupa = 1026 tool6Pc 70.447 hsupa to.gog ACT, n=141, R2 = 0.219 the model measures the average effect of having a pc on calcipA for not for one random student , but for 141 random students. > Owing a PC increase up A by 0.16 points on average 1 option ☺ is correct.