econometrics

Econ 390-03

Assignment 9 (this is the 8th assignment but refers to Module 9)

Due date is Wednesday Oct 28th 11:59 PM. Late submissions are not accepted.

1. Open the Caschool data in RStudio

2. Read the Description of the data uploaded on Canvas

3. Provide a summary of variables: str, testscr, el_pct, avginc, and meal_pct (what they are, what their unit is, what their mean is?)

4. Run a single regression of testscr over str.

5. What is the model?

6. What is the predicted equation?

7. If avginc is missing, is there any Omitted Variable Bias with regard to it? And if yes is it upward bias or downward bias?

8. Run a multiple regression of testscr over str, el_pct, avginc, and meal_pct. (the 4 variables must be included in 1 regression and not separately).

9. What is the population equation?

10. What is the predicted equation?

11. What is the effect of str on testscr.

12. Bob goes to a district in California, the value of str in that district is 20, the average income of the district is 25000$, 8 %of the students are learning English, and 70% of the student use subsidized lunch. What is his predicted testscr?

Please save your r-script and submit it as an attachment on canvas the way you submit other files. You can also save and attach the plot as a PDF file. .