uppose that work in the admissions office of the Co t a doesn\'t allow prospecti
ID: 3205653 • Letter: U
Question
uppose that work in the admissions office of the Co t a doesn't allow prospective students to apply by using Application How might you go about estimating the nuommon extra applications that your college would receive if it allowed or use of the Application? An econometric a this question Common build the best possible model e number would estimated of a applications and then to examine the question of dummy that one the the use of the app" (and zero otherwise). an using the data in Table for high-quality coed national liberal arts colleges, we get: 2.3 APPLICATION 523.3 2,15SIZE 32.1 RANK 1222COMMONAPP (2.18) 724 705 49 where: APPLICATION the number of applications received by the ith college in 2007 SIZE students at the ith college in 2006 the U.S. News rank of the ith college RANK (1 best) in 2006 COMMONAPP, a dummy variable equal to 1 if the ith college allowed the use of the Common Application in 2007 and 0 otherwise. e Common Application is a computerized application form that allows high school stu- to apply to a number of different colleges and universities using the same basic data. For information, go to www.commonap.org. s. News and World Report staff us. News ultimate College Guide. Naperville, lllinois ebooks, Inc., 2006-2008.Explanation / Answer
(a)The signs are as expected since:
(i) size : As the size(student strength) of the college increases the number of applications increases, thus showing a positive correlation between dependant and indpendant variable and thus the positive sign for the coefficient
(ii) As the rank decreases the applications will increase, hence the negative sign is appropriate
(ii)Common app allows the student to apply more hence is the posive sign appropriate here
(b)No, the value of the coefficient also depends on the scale that the variable is and hence we cannot draw any conclusions about the variable importance here. howevber we can know which variable is important from the information value
(c)Harvey mudd college and pitzer colleges are exaples that they both have common app facility but the number of applications are less than 1222
(d)Yes, the results from excel matches with the regression results given
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.