Professor Ronald Fisher and Carl Liedholm both taught principles of microeconomics (ECON 101) at Michigan State University. During a few terms, they were teaching ECON 101 together, and they decided to collect data about their students. A random sample from their data can be found in the attend data set in the Wooldridge library in
R
. Using a random sample (from the data collected) of 392 sophomore students taking ECON 101 at Michigan State University, we are interested in determining whether standardized test scores (ACT scores) can predict cumulative GPAs (First Year GPA). Below you will find a scatterplot of the data and relevant R output. ACT Soore
>attend_model <-1 m(year1GPA∼ACT, data = attend) > summary(attend_model) Question 5 Subquestions
5.aTBD What is the population of interest? points
5.bTBD Interpret the slope and intercept in context. points Note: the interpretation of the intercept might not make sense within context - but still interpret it regardless Can we conclude that higher ACT scores leads to higher college GPA? True-States require students to take the ACT test in order to graduate high school . True-the questions on the ACT test are directly related to what students have learned in high school courses, which prepares them for college courses. False--this is an observational study. We cannot make a causal claim without controlling for other random factors or having a well-controlled experiment. False-the ACT test puts more emphasis on verbal skills. Hence, we should use the SAT scores instead. Can we use the results of this model to make conclusions about ACT scores and freshman year GPA's of UofM students taking ECON 101? Why? Why not?
