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Improving SAT scores. Refer to the Chance (Winter 2001) study of students who paid a private tutor (or coach) to help them improve their Standardized Assessment Test (SAT) scores, Exercise 4.50 (p. 223). Recall that multiple regres- sion was used to estimate the effect of coaching on SAT- Mathematics scores, where
y = SAT- Math scorex1 = score on PSATx2 = {1 if student was coached, 0 if not}
(a) Write a complete second-order model for E(y) as a function of x1 and x2.
(b) Give the equation of the curve relating E(y) to x1 for noncoached students. Identify the y-intercept, shift parameter, and rate of cur- vature in the equation.
(c) Repeat part b for students who have been coached on the SAT.
(d) How would you test to determine if coaching has an effect on SAT- Math scores?
Design a simple econometric research project
Multiplicative decomposition method
The Australian government administers two programs that affect the market for cigarettes.
Solve the forecast model
What are the marginal abatement cost functions for each of the two areas? Calculate the loss in the two areas due to over-control (for the rural area) and under-control (for the urban area).
Explain why this model violates the assumption of no perfect collinearity. Write the t statistic for testing the null hypothesis
What is economics system? What are the types of economics system? Briefly explain each type of economics system by giving examples of nations that are close to each type
Determine when a competitively produced product generates negative externalities in production, the industry will,
Assume a company has the following production function: Q = 100 K.5 L1 . Currently, the company hires 1,000 workers and employs 100 units of capital.
M-commerce also known as mobile commerce is being lumped in with several strategic internet plans. Explain some of the industries that are likely to use mobile commerce and how it is working for them.
Auto Data manufactures custom engineering testing machine. The following 5-orders are currently in the design department:
Briefly discuss the difference between mechanism of an oral or English auction and a Vickrey or second price auction.
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