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Week Two Assignment, Econometrics

The document summarizes the results of regressing FGPA on various variables including SATV, SATM, and FEM. Key results include: - When regressing only on SATV, the coefficient is 0.063, standard error is 0.028, and p-value is 0.023. - When regressing on SATV, SATM, and FEM, the coefficient for SATV is 0.014, standard error is 0.027, and p-value is 0.612. - SATV and SATM are correlated, which explains the difference in SATV's impact between the single-variable and multi-variable regressions. - An F-test to

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124 views

Week Two Assignment, Econometrics

The document summarizes the results of regressing FGPA on various variables including SATV, SATM, and FEM. Key results include: - When regressing only on SATV, the coefficient is 0.063, standard error is 0.028, and p-value is 0.023. - When regressing on SATV, SATM, and FEM, the coefficient for SATV is 0.014, standard error is 0.027, and p-value is 0.612. - SATV and SATM are correlated, which explains the difference in SATV's impact between the single-variable and multi-variable regressions. - An F-test to

Uploaded by

Garima
Copyright
© © All Rights Reserved
Available Formats
Download as PDF, TXT or read online on Scribd
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Week Two

Econometrics

(a) (i) Regress FGPA on a constant and SATV. Report the coefficient
of SATV and its standard error and p-value (give your answers
with 3 decimals).
(ii) Determine a 95% confidence interval (with 3 decimals) for
the effect on FGPA of an increase by 1 point in SATV.
Regressed using Microsoft Excel -
SUMMARY
OUTPUT

Regression Statistics
Multiple R 0.092167121
R Square 0.008494778
Adjusted R Square 0.006861326
Standard Error 0.458655877
Observations 609

ANOVA
Significance
df SS MS F F
Regression 1 1.094006 1.094006 5.200508 0.022926
Residual 607 127.6917 0.210365
Total 608 128.7857

Standard Upper Lower


Coefficients Error t Stat P-value Lower 95% 95% 95.0%
Intercept 2.441732463 0.155062 15.74681 4.26E-47 2.137209 2.746256 2.137209
SATV 0.063085845 0.027664 2.280462 0.022926 0.008758 0.117414 0.008758

The coefficient rounded to 3 decimals is: 0.063


The Standard error of Slope rounded to 3 decimals is: 0.028
The P-Value rounded to 3 decimals is: 0.023
The 95% confidence interval for effect on FGPA with an increase by 1 point is:
[0.0088, 0.1174]
(b) Answer questions (a-i) and (a-ii) also for the regression of FGPA on a
constant, SATV, SATM, and FEM.
SUMMARY
OUTPUT

Regression Statistics
Multiple R 0.288035928
R Square 0.082964696
Adjusted R Square 0.078417414
Standard Error 0.44182384
Observations 609

ANOVA
Significance
df SS MS F F
Regression 3 10.68466569 3.56155523 18.24489595 2.4115E-11
Residual 605 118.1010251 0.195208306
Total 608 128.7856908

Standard
Coefficients Error t Stat P-value Lower 95% Upper 95%
Intercept 1.557048213 0.216095514 7.20537036 1.72986E-12 1.132659785 1.981436641
SATM 0.172735887 0.031926713 5.410387396 9.07148E-08 0.110035244 0.23543653

SATV 0.014161897 0.027926969 0.507104667 0.612266162 -0.040683678 0.069007471


FEM 0.200271605 0.037380851 5.357598893 1.20027E-07 0.126859621 0.273683589

The coefficient rounded to 3 decimals is: 0.014


The Standard error rounded to 3 decimals is: 0.027
The P-Value rounded to 3 decimals is: 0.612
The 95% confidence interval for effect on FGPA with an increase by 1
point is: [-0.0406, 0.0690]

(c) Determine the (4 × 4) correlation matrix of FGPA, SATV, SATM,


and FEM. Use these correlations to explain the differences
between the outcomes in parts (a) and (b).
FGPA SATV SATM FEM
FGPA 1.000000 0.092167 0.195040 0.176491
SATV 0.092167 1.000000 0.287801 0.033577
SATM 0.195040 0.287801 1.000000 -0.162680
FEM 0.176491 0.033577 -0.162680 1.000000

When SATV was the only variable that we were working with, it had
a major impact on FGPA. However, when we introduce other
variables, this impact becomes a little less significant as noticed in
part b where we study the partial dependence. This is because SATM
and SATV are the correlated and due to that the impact is from the
influence of SATM.

(d) (i) Perform an F-test on the significance (at the 5% level)


of the effect of SATV on FGPA, based on the regression in part
(b) and another regression. Note: Use the F-test in terms of SSR
or R 2 and use 6 decimals in your computations. The relevant
critical value is 3.9.
(ii) Check numerically that F = t^2.
F-Test Two-Sample for
Variances

The Modified Model SSR rounded to 6 decimals is: 118.151224


The Modified Model R^2 rounded to 6 decimals is: 0.082575

The Part-B Model SSR rounded to 6 decimals is: 118.101025


The Part-B Model R^2 rounded to 6 decimals is: 0.082965

The F statistic rounded to 3 decimals is: 0.258


F-statistic is less than the provided critical value, i.e., 0.258 < 3.9, Null
hypothesis H0 is not rejected.

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