ECON 351 Study Guide - Midterm Guide: Quantum Key Distribution, Linear Regression, Heteroscedasticity
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Due: july 23, 11:59pm solutions in brown, grading scheme in blue: use the 321 survey data to investigate study hours for students in the 321 class, suppose we believe the population model to be: hrsstudyi= 0 1yrsschooli 2skippedi 3cheatexami 3cheatexam skippedi ui. Theoretically, there is no reason to suppose perfect multicollinearity in this regression. However, we might expect a imperfect multicollinearity between skipped and cheat, or on the interaction term. We can investigate whether multicollinearity is a problem by looking at the correlation between variables and/or by running the full specification and smaller ones as well. ( pt) | yrssch~l skipped cheate~m chtskip yrsschool | 1. 0000 skipped | 0. 1237 1. 0000 cheatexam| 0. 0229 0. 1029 1. 0000 chtskip | -0. 0236 0. 4354 0. 5965 1. 0000. So while the correlation moderate with the interaction term, all other correlations are quite low. Model | 21. 5060862 4 5. 37652155 prob > f = 0. 1048. Residual | 82. 2009408 32 2. 5687794 r-squared = 0. 2074.
