Introduction to Econometrics 3rd Edition by James Stock, Mark Watson

Exercise 10

Using the data set TeachingRatings described in Empirical Exercise 4.2, carry out the following exercises.
a. Estimate a regression of Course_Eval on Beauty, Intro, OneCredit, Female, Minority, and NNEnglish.
b. Add Age and Age 2 to the regression. Is there evidence that Age has a nonlinear effect on Course _Eval Is there evidence that Age has any effect on Course_Eval
c. Modify the regression in (a) so that the effect of Beauty on Course_Eval is different for men and women. Is the male-female difference in the effect of Beauty statistically significant
d. Professor Smith is a man. He has cosmetic surgery that increases his beauty index from one standard deviation below the average to one standard deviation above the average. What is his value of Beauty before the surgery After the surgery Using the regression in (c), construct a 95% confidence for the increase in his course evaluation.
e. Repeat (d) for Professor Jones, who is a woman.