1. The table below shows the first year GPA and ACT score for 11 college student

Question

1. The table below shows the first year GPA and ACT score for 11 college student, and also includes a dummy variable for female. GPA ACT 14 27 Student Female 3.4 3.8 4 27 2.3 3.9 3.2 3.6 2.8 3.4 3.4 0 34 29 30 23 30 28 la. You want to estimate the model GPA-A, + | ACT + ,Female + e . Calculate your estimate for the female dummy's coefficient, . Show your work. lb. Interpret your estimate . Explain in words what the number you get means. Do you think this is practically significant? lc. Note that the model in la. does not have a dummy variable for men. Explain why it would be problematic to estimate a model like GPA-, + , ACT + Female + , Male + e

Explanation / Answer

I have used regression on Excel to solve the problem. Here' the results:

a. the estimate is -.149.

b. Since it has a p-value less than .05, at .02, it is practically significant. It can be interpreted as 'if a person is a female the GPA decreases by .149 units on a average

c. Actually dummy variable of Female has flags 1 and 0, 1 is female and 0 is male. So, you don't actually need a separate flag for men, as it' already been taken care by female flag. Hence, the new model need not have dummy variable for men

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