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Introductory Econometrics 4th Edition by Jeffrey Wooldridge
Edition 4ISBN: 978-0324660609Introductory Econometrics 4th Edition by Jeffrey Wooldridge
Edition 4ISBN: 978-0324660609 Exercise 3
Use the data in GPA2.RAW for this exercise.
(i) Estimate the model sat = 0 + 1 hsize + 2 hsize 2 + u, where hsize is the size of the graduating class (in hundreds), and write the results in the usual form. Is the quadratic term statistically significant
(ii) Using the estimated equation from part (i), what is the "optimal" high school size Justify your answer.
(iii) Is this analysis representative of the academic performance of all high school seniors Explain.
(iv) Find the estimated optimal high school size, using log(sat) as the dependent variable. Is it much different from what you obtained in part (ii)
(i) Estimate the model sat = 0 + 1 hsize + 2 hsize 2 + u, where hsize is the size of the graduating class (in hundreds), and write the results in the usual form. Is the quadratic term statistically significant
(ii) Using the estimated equation from part (i), what is the "optimal" high school size Justify your answer.
(iii) Is this analysis representative of the academic performance of all high school seniors Explain.
(iv) Find the estimated optimal high school size, using log(sat) as the dependent variable. Is it much different from what you obtained in part (ii)
Explanation
Verified
Verified
(i)
The estimated equation is: 
The quad...
Introductory Econometrics 4th Edition by Jeffrey Wooldridge
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