MATLAB: An Introduction with Applications
MATLAB: An Introduction with Applications
6th Edition
ISBN: 9781119256830
Author: Amos Gilat
Publisher: John Wiley & Sons Inc
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2.
Consider the following regression model:
Class Average; = Bo + B1 x 0ffice Hours; + Ui
Class Average is the students' average grade in the class at the end of the term and Office Hours
is the number of office hours held by the instructor over the entire term.
A researcher who collects data and regresses Class Average against Office Hours finds that,
surprisingly, B< 0.
The OLS estimator, B, however, likely suffers from omitted variable bias because instructors
who teach large introductory courses with many non-major enrollees, in which grades are
relatively low, might hold more office hours than instructors who teach small upper level
courses with few non-major enrollees, in which grades are relatively high. Because of this
omitted variable bias, it is likely the case that B,.
A)
В)
V A
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Transcribed Image Text:2. Consider the following regression model: Class Average; = Bo + B1 x 0ffice Hours; + Ui Class Average is the students' average grade in the class at the end of the term and Office Hours is the number of office hours held by the instructor over the entire term. A researcher who collects data and regresses Class Average against Office Hours finds that, surprisingly, B< 0. The OLS estimator, B, however, likely suffers from omitted variable bias because instructors who teach large introductory courses with many non-major enrollees, in which grades are relatively low, might hold more office hours than instructors who teach small upper level courses with few non-major enrollees, in which grades are relatively high. Because of this omitted variable bias, it is likely the case that B,. A) В) V A
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