5. Suppose we want to estimate the effects of alcohol consumption (alco- hol) on college grade point average (colGPA). In addition to collecting information on grade point averages and alcohol usage, we also obtain attendance information (say, percentage of lectures attended, called attend). A standardized test score (say, SAT) and high school GPA (hsGPA) are also available. (a) Should we include attend along with alcohol as explanatory vari- ables in a multiple regression model? (Think about how you would interpret alcohol.) (b) Should SAT and hsGPA be included as explanatory variables? Еxplain.

5. Suppose we want to estimate the effects of alcohol consumption (alco- hol) on college grade point average (colGPA). In addition to collecting information on grade point averages and alcohol usage, we also obtain attendance information (say, percentage of lectures attended, called attend). A standardized test score (say, SAT) and high school GPA (hsGPA) are also available. (a) Should we include attend along with alcohol as explanatory vari- ables in a multiple regression model? (Think about how you would interpret alcohol.) (b) Should SAT and hsGPA be included as explanatory variables? Еxplain.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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