ECON 306 Homework 4 Answers (Penn State University)

(50 points total) In this exercise we will examine whether a teacher’s physical attractiveness has any impact on student course evaluations. The dataset to use is called teachingratings, and a description of the variables is available as well. You can access these through the course website. Use an α=.05 for hypothesis testing. We’ll first examine whether our control variables seem to have any predictive power for ratings. a.) (10 points) We’ll start with some basic dummy variable regressions to test for differences between groups: 1) Regress course_eval on minority. Report the coefficients and p-values. Do minority instructors have significantly different course evaluations compared to nonminorities? ­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­ course_eval | Coef. Std. Err. t P|t| [95% Conf. Interval] ­­­­­­­­­­­­­+­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­ minority | ­. . ­1.65 0.099 ­. . _cons | 4. . 144.82 0.000 3. 4. ­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­ Y = β0−0.123 Minority+ε 1 coefficient is = -0.12 || P value is 0.; H0: minority = 0 Ha: minority  0 t critical is 1.96 and t statistic = -1.65 If T statistic is greater than 1.96 or smaller than negative 1.96, we will reject our null hypothesis