Introductory Econometrics: A Modern Approach 6th Edition by Jeffrey M Wooldridge

Exercise 3

Use the data in GPA2.RAW for this exercise.

Using all 4,137 observations, estimate the equation and report the results in standard form.

(ii) Reestimate the equation in part (i), using the first 2,070 observations.

(iii) Find the ratio of the standard errors on hsperc from parts (i) and (ii). Compare this with the result from (5.10).

Step 1 of 3

i.

The regression equation for all 4,137 observations is given below:

Where, colgpa, hspers and sats are variables in the equation. The regression equation indicates that the variable hsperc is negatively related to colgpa and sat is positively related to colgapa. The p-values in the parenthesis indicate that both are significant at 5 percent level.