Question

6. Professor Worth has analyzed midterm exam scores of students enrolled in his introductory economics course, using data on each student. He has obtained the following regression results: SCORE = 0.67 + 0.14 SAT + 0.21 STUDY + 0.07 [STUDY SAT] + e (0.22) (0.03) (0.08) (0.02) where entries in parentheses are the standard errors of the parameter estimates immediately above them; SAT = the student's SAT score, measured in units of 100 (so a score of 600 has an SAT value of 6, etc.); STUDY = hours that the student spent studying for the midterm; SCORE = the student's score on the midterm; and e = error term. (Note that [STUDY×SAT) is the product of the variables STUDY and SAT.) Ignore possible omitted-variable bias. With this as background, explain what these results tell us about student performance. (Be sure to discuss each of the individual regression coefficients in the above results.)

Answer 1

9 IS 722 SCORE = 0.67 (0.22 +0.14 SAT +0.21 STUDY (0.03) 10.08) +0.07 [STUDYXSAT] te SAT the students SAT Score, measured in hits of IDY - QUIN Hours that the students spent studyona for the midterm. P P SCORE student score of on midterm P P P P The given regression is linear - linear regression intercept term of this regression is o.67 it means if no sat score and student nol-spent- any studying Hours then the student score on the midterm is 0.67. is posique. lathes we talk about the term SAT we see that SAT has positive impact on midterm score ine if SAP increase by 100 units then midterm score increase by 0.1uxico ie 14 because as ginen SAT scho score measured in writs of 100 emalso it is significants on the other & Number of hours that spent on study was positive impact on midterm score it means is studing hour increases by 1 hour then student score on midterm increase by 0.2 times of initial score, so according to this of SAT score increase or study score increase us both are increase it was positive impact on student performance, ire marks also increases in the midterm