Suppose we are interested in examining the impact of a new tutoring program on s

Question

Suppose we are interested in examining the impact of a new tutoring program on students' grades on the first midterm exam in introductory economics classes at GSU. Tutors work in the library every day during the week before the exam (2477 and students can just drop by and ask the tutors to explain the material that will be covered in the exam. When a student comes to ask a tutor a question, the tutor records the student's id and this is later matched to the student's class records. Let Ti be a dummy variable that equals 1 if the student consulted with a tutor during the week before the exam, and let score, be student i's score on the exam. You also have information on whether the student was a Freshman (dummy variable Frsh, = 1 if i is a Freshman ), Sophomore (dummy variable Sophi = 1 if i ) is a Sophomore, Junior (dummy variable Juni = 1 if i ) is a Junior, or a Senior (dummy variable Sen.- 1 if i is a Senior), and the student's percentile score their entrance exam, pctile Suppose you run the regression: () (5 points) Why is the variable Seny not included in this regression model. (ii) (10 points) Interpret precisely the coefficient ßs. State explicitly what effect it measures. (ii) (10 points) Interpret precisely the coefficient op. State explicitly what effect it measures. (10 points) What is the predicted score for a Junior who consulted with a tutor before the exam who scored at the 40th percentile of the entrance exam. (iv) (5 points) Should school administrators treat estimates of effects from this regression model as reliable estimates of the benefits of the tutoring program? Why or why not? (v)

Explanation / Answer

The variable Seni is not included as it will lead to dummy variable trap because the variable Juni has two categories that is it takes value 1 if junior and 0 if senior. The Coefficient s tells the differential effect of the Sophomore on the score of an individual. The score of the Sophomore will differ by s keeping other variables constant to one who is not a Sophomore. The coefficient F tells the differential effect of a student being a freshman and consulting a teacher week before exam. It tells how the score of freshman students who consulted with teacher differ from those who didn’t. The score will be J+ 1+ J + 0.42

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