Introductory Econometrics 4th Edition by Jeffrey Wooldridge

Exercise 2

Suppose the following equation describes the relationship between the average number of classes missed during a semester (missed) and the distance from school (distance, measured in miles): missed = 3 + 0.2 distance.
(i) Sketch this line, being sure to label the axes. How do you interpret the intercept in this equation
(ii) What is the average number of classes missed for someone who lives five miles away
(iii) What is the difference in the average number of classes missed for someone who lives 10 miles away and someone who lives 20 miles away