PMAP 4041: Problem Set 3 Grading: This assignment is worth a total of 34 points (5% of your overall grade). Question 1: Please answer the following questions based on the information in Table 1. Table...

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Answer To: PMAP 4041: Problem Set 3 Grading: This assignment is worth a total of 34 points (5% of your overall...

Himanshu answered on May 20 2021
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PMAP 4041: Problem Set 3
Grading: This assignment is worth a total of 34 points (5% of your overall grade).
Question 1: Please answer the following questions
based on the information in Table 1. Table 1 shows the regression with grade and a set of dummy variables representing people’s race. Race would be five values: whites, Asians, blacks, Hispanic, and Indians.
    Table 1 Coefficientsa
    Model
    Unstandardized Coefficients
    Standardized Coefficients
    t
    Sig.
    
    B
    Std. Error
    Beta
    
    
    1
    (Constant)
    10.082
    .121
    
    83.238
    .000
    
    asian
    -.437
    .599
    -.022
    -.730
    .466
    
    black
    -2.168
    .275
    -.245
    -7.880
    .000
    
    hispanic
    -1.144
    .482
    -.073
    -2.371
    .018
    
    indian
    -1.847
    .802
    -.071
    -2.304
    .021
    a. Dependent Variable: grade
1. What is the regression equation (2 points)
Solution:
Where is grade




2. What is the reference group? (2 points)
Solution: Reference group means the category for which no dummy variable is defined. Here, the reference group is the people belonging to “Whites” race.
3. Interpret the y-intercept (2 points)
Solution: The y-intercept is nothing but the constant in the regression equation. It means that the mean grade of people belonging to Whites race is 10.082.
4. Interpret the regression coefficient on Hispanic (2 points)
Solution: It means that the mean grade of Hispanic is 1.144 less than that of Whites. The value is significant at 5% level of significance.
5. Interpret the regression coefficient on Asian (2 points)
Solution: It means that the mean grade of Asian...
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