momeduc = motheduc * The data set also contains the variable, nearcol , which is
ID: 3154027 • Letter: M
Question
momeduc = motheduc *
The data set also contains the variable, nearcol, which is equal to 1 for people whose home is close to a college (i.e., community college or state university) and equal to 0 otherwise
Regress coleduc on nearcol and the control variables (motheduc, exper, and IQ):
Are people whose home is a long way from a college are less likely to attend college? Is the effect statistically significant?
lwage = 0 + Acoleduc + 2mom educ + 3exper + AIQ + u (1) where lwage is log of hourly wage, coleduc is a dummy variable indicating college attendance, which is our treatment variable, momeduc is mother's education level, exper is years of experience, and IQ is IQ score.Explanation / Answer
since the p-value =0.007 regression coefficient of variable nearcol is less than alpha=0.05 (let ),
therefore variable, nearcol is significant, which is equal to 1 for people whose home is close to a college (i.e., community college or state university) and equal to 0 otherwise.
hence we conclude that as this coefficient is different from zero, so people whose home is a long way from a college are less likely to attend college and this effect is statistically significant
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.