Suppose that you are interested in studying the effect parental involvement has

Question

Suppose that you are interested in studying the effect parental involvement has on children’s grades. You plan to measure parental involvement by asking the students a few survey questions.

After asking several prospective schools in Massachusetts to participate, Millford Academy, ranked one of the most prestigious private high schools in the state, allows you to conduct your study there. They have agreed to send a participation consent form to each student’s parents or guardians asking whether or not they consent to have their child take the survey and release their grades for each course.

A. [6 points] Provide 2 questions that you would want to ask on your survey in order to collect information of parental involvement and justify their use. Make sure these provide concrete measures that can be used in your model.

B. [12 points] If you estimate your model using OLS, do you believe that any of our Classical Linear Model assumptions would be violated? If so, explain which ones, why they are violated, and what potential problems that could pose for your estimation.

Explanation / Answer

A.

In a given scenario, cause-effect model can be established between “parental involvement” and “grades in school”. Here, cause is “parental involvement” and effect is “grades in school”.

Two questions that should be asked, are as follows:

Above two questions will help in ascertaining the level of involvement as well as the awareness of parents towards their ward. It certainly affects the grades of their child.

B.

Violation of assumptions can take place if model is not linear in parameters. It is related to the coefficients of the variables. If parameters are not linear then it will cause violation. It further leads to biasedness in results. It will affect the accuracy of the findings.

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