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4. You study the determinants of attending college. You run a linear probability model: College 0.300+0.050 grades +0.001 faminc-0.005- male +u, = (0.059) (0.005) (0.0005) (0.034) where College is a dummy variable that takes the value of 1 if a person decides to go to college and 0. otherwise. The independent variables include high school grades (1 = worst, 10 best), annual family income ("famine", measured in $1000), and a binary variable indicating male. (a) Use the estimated coefficients to explain how high school grades and family income affect the probability of attending college? Which of these effects are significant at the 1% level? (b) Predict the probability of attending college for a student with the following characteristics: (1) has a grade-4; (2) has a family income = $200,000; (3) female 1=

4. You study the determinants of attending college. You run a linear probability model: College 0.300+0.050 grades +0.001 faminc-0.005- male +u, = (0.059) (0.005) (0.0005) (0.034) where College is a dummy variable that takes the value of 1 if a person decides to go to college and 0. otherwise. The independent variables include high school grades (1 = worst, 10 best), annual family income ("famine", measured in $1000), and a binary variable indicating male. (a) Use the estimated coefficients to explain how high school grades and family income affect the probability of attending college? Which of these effects are significant at the 1% level? (b) Predict the probability of attending college for a student with the following characteristics: (1) has a grade-4; (2) has a family income = $200,000; (3) female 1=

College Algebra
College Algebra
10th Edition
ISBN:9781337282291
Author:Ron Larson
Publisher:Ron Larson
Chapter6: Systems Of Equations And Inequalities
Section: Chapter Questions
Problem 19RE
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Title No Spacing Heading 1 Styles √y 4. You study the determinants of attending college. You run a linear probability model: College 0.300+0.050 grades +0.001 faminc-0.005 - male + u, (0.059) (0.005) (0.0005) (0.034) where College is a dummy variable that takes the value of 1 if a person decides to go to college and 0 otherwise. The independent variables include high school grades (1= worst, 10 = best), annual family income ("famine", measured in $1000), and a binary variable indicating male. (a) Use the estimated coefficients to explain how high school grades and family income affect the probability of attending college? Which of these effects are significant at the 1% level? (b) Predict the probability of attending college for a student with the following characteristics: (1) has a grade=4; (2) has a family income = $200,000; (3) female Focus I Heading 2 8 HA 22 Find Replace Select Editing
Transcribed Image Text:Title No Spacing Heading 1 Styles √y 4. You study the determinants of attending college. You run a linear probability model: College 0.300+0.050 grades +0.001 faminc-0.005 - male + u, (0.059) (0.005) (0.0005) (0.034) where College is a dummy variable that takes the value of 1 if a person decides to go to college and 0 otherwise. The independent variables include high school grades (1= worst, 10 = best), annual family income ("famine", measured in $1000), and a binary variable indicating male. (a) Use the estimated coefficients to explain how high school grades and family income affect the probability of attending college? Which of these effects are significant at the 1% level? (b) Predict the probability of attending college for a student with the following characteristics: (1) has a grade=4; (2) has a family income = $200,000; (3) female Focus I Heading 2 8 HA 22 Find Replace Select Editing
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