Suppose you want to examine what factors influence a student’s college GPA. A. C

Question

Suppose you want to examine what factors influence a student’s college GPA.

A. Create a dummy variable “female” that is equal to 1 if the student is female and 0 if the student is male.

(Already did it)

B. Run an OLS regression of colgpa on hsize, hrank, female, black, and female*black. How do we interpret the coefficient on female and the coefficient on black? Comment on their statistical significance.

C. What is the estimated difference in colgpa for a black female and a non-black female, holding everything else constant? Test for the statistical significance of this difference.

D. You hypothesize that a high school’s size could have a different predicted impact on a student’s college GPA depending on the student’s sex. Re-specify your model from part B to test for this difference and run the regression. Holding everything else constant, what is the estimated difference of the impact of high school size on college GPA for non-black females, black males, and black females, compared to non-black males (the reference group)?   

Explanation / Answer

Result:

Suppose you want to examine what factors influence a student’s college GPA.

A. Create a dummy variable “female” that is equal to 1 if the student is female and 0 if the student is male.B. Run an OLS regression of colgpa on hsize, hrank, female, black, and female*black. How do we interpret the coefficient on female and the coefficient on black? Comment on their statistical significance.

Regression coefficient for female is 0.0840616. If the subject is female there is an increase of 0.0840616 in colgpa. Calculated t=4.37, P=0.000 which is < 0.05 level of significance. Female is statistically significant.

Regression coefficient for black is -0.3848531. If the subject is black there is an decrease of 0.3848531 in colgpa. Calculated t=-6.79, P=0.000 which is < 0.05 level of significance. Black is statistically significant

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