MT2.SP15.solved ECON 306

Economics 306 Midterm #2, Spring 2015 100 Points 75 Minutes Instructions: Answer the following questions as clearly as you can. Circle your answers. Partial credit is available, but we cannot give partial credit unless you show your work. You do not need to write out every detail, but give a clear indication of how you are making your calculations. For problems with many parts where you use information from earlier in the problem to answer the question, you can receive full credit if you do the correct work but use the wrong numbers. The clearer you are in your explanation the more straightforward this part of the grading will be. You may use any type of hand-held calculator. All other electronic devices are prohibited. DO NOT OPEN UNTIL I START THE TEST Statement of Academic Integrity: ‘I understand that cheating on this exam or helping anyone to cheat is a violation of the Penn State policy on academic integrity. I understand that if I am caught cheating it could result in academic and/or disciplinary action, including a mark on my transcript. It is also simply ethically wrong to cheat. I will not cheat on this exam or knowingly let anyone cheat from my work. ’ Signature_________________________________ Date_________ This study source was downloaded by from CourseH on :46:01 GMT -05:00 Part 1 (9 questions: 5 points each, 45 points total) Suppose we have a large dataset on high school students. Amongst the variables in this dataset are measures of cumulative grade point average (“cumgpa”), a dummy variable for gender (female=1 if the student is female, 0 otherwise), and a dummy variable for whether the student has a job (job=1 if the student is has a job, 0 otherwise). We execute a few basic regressions for the dependent variable cumgpa and produce the following output in STATA: .//Model 1 (coefficients only) . regress cumgpa job if female==0 ­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­ cumgpa | Coef. Std. Err. t P|t| [95% Conf. Interval] ­­­­­­­­­­­­­+­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­ job | . . 2.98 0.003 . . _cons | ddddddddd . 0.000 ­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­