5) Suppose you have survey data on food intake and children test scores from a p

Question

5) Suppose you have survey data on food intake and children test scores from a poor, rural village. You are interested in investigating whether children who eat more nutritiously perform differently on test scores so you run a regression of test scores on a measure of nutrition. From running this regression, you obtain a regression coefficient on nutrition which we will call b. The coefficient b tells you the estimated marginal effect of nutrition on test scores. a. Do you predict the coefficient from this regression, b, to be positive or negative? Why? b. Can the regression estimate b tell us whether eating more nutritiously causes higher test scores? Why or why not? c. You realize that you also have data on the parents' completed schooling and decide to control for that in your regression. In this expanded regression, let the coefficient c measure the marginal effect of nutrition on test scores and let the coefficient d measure the marginal effect of parents' schooling on test scores. Do you predict each of the coefficients, c and d, to be positive or negative? Why-? d. How will our interpretation of coefficient c be different from that of coefficient b in the earlier regression, if at all? Explain.

Explanation / Answer

a. The regression coefficient will be positive in this case as the growth of the children is based on food intake which is nutritious.

b. Eating more nutriously will surely cause higher test scores as the chilren will be more strong and imune than chilren who do not intake nutritious food.

c. Marginal effect for c will be positive as we will measure the nutrition on test scores keeping other variables as constant.

And for d it will be negative as we are performing the schooling tests on a range of people who are from a rural area so probablity of literates will be less.

d. Coefficient c and b will remain same.

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