Correlation between unobserved student traits

Reference no: EM1398436

We have collected the following variables out of a random sample.

Final Exam Score
Percent of lectures attended
Level of course Dummys
Required Course Dummy
Cumulative GPA
Gender Dummy

A) What kind of model should be used to estimate final exam scores in terms of the other variables? Write down the mathematical model to estimate.

B) Now rewrite the model -- using c and s subscripts to indicate class and student respectively. Indicate using the subscripts which variables vary by class only and student only and by both class and student.

C) Suppose we estimate this model with OLS, and there is a correlation between unobserved student traits (in the error term) with attendance. How does this bias the coefficient of attendance?

Reference no: EM1398436

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