Suppose that a score on a final exam (between 0−40 ), final, depends on classes attended (0-32), attend and unobserved factors that affect exam performance. Then final =β0+β1 attend +u a. List three factors that are found in u. b. Does the zero conditional mean assumption hold? Explain. c. What do you believe the sign of β1
is (positive or negative)? d. Using Stata and the attend.dta data set, answer the following questions. i. What are the OLS estimates of the population parameters ( β^0 β^1)? ii. Interpret the slope estimate? iii. Interpret the intercept estimate? iv. What is the predicted score for an individual who attends 10 of the 32 lectures?