You are trying to estimate the effects of skipping class on college GPA. You est

Question

You are trying to estimate the effects of skipping class on college GPA. You estimate the equation, and have the following results (the standard errors are in parentheses below the coefficient estimates.)

.378

(.064)

.048

(.039)

-.231

(.065)

1.05

(.58)

1. Construct a 95% confidence interval for the estimate of hsGPA.

2. Construct a 90% confidence interval for the estimate of ACT.

3. Based on your confidence interval for ACT, is ACT significant at the 10 percent level? Explain your answer in one or two sentences.

Any and all help is greatly appreciated

Variable colGPA hsGPA

.378

(.064)

ACT

.048

(.039)

skipped

-.231

(.065)

intercept

1.05

(.58)

Obs 280 R-squared .261 ? skipped

Explanation / Answer

1)95 % confidence interval foe hsGPA
=(slope - t*se , slope + t* se)
= (0.378 - 1.96 *0.064,0.378 - 1.96 *0.064)
=( 0.25256, 0.50344)

{note t = z =1.96 for 95 % , n = 280>>30}

2)
for 90 % confidence level , t= 1.645
(0.048- 1.645* 0.039,0.048+ 1.645 * 0.039)
= ( -0.016155,0.112155)

3)
since 0 is present in 90% confidence interval
we fail to reject the null hypothesis

ACT is not significant at 10% level

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