Suppose you want to examine what factors influence a student’s college GPA. A. C

Question

Suppose you want to examine what factors influence a student’s college GPA.

A. Create a dummy variable “female” that is equal to 1 if the student is female and 0 if the student is male.

(Already did it)

B. Run an OLS regression of colgpa on hsize, hrank, female, black, and female*black. How do we interpret the coefficient on female and the coefficient on black? Comment on their statistical significance.

C. What is the estimated difference in colgpa for a black female and a non-black female, holding everything else constant? Test for the statistical significance of this difference.

D. You hypothesize that a high school’s size could have a different predicted impact on a student’s college GPA depending on the student’s sex. Re-specify your model from part B to test for this difference and run the regression. Holding everything else constant, what is the estimated difference of the impact of high school size on college GPA for non-black females, black males, and black females, compared to non-black males (the reference group)?   

Explanation / Answer

b) p value for female and black are small so we may say that both are contributed to the model and the coefficient of black is the change in mean student college GPA resulting from a change from male student to female student.

c) for tesing the significance of the differnce we use extra sum of square method

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