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?

Q&A Education