Question

# The University Secretary wants to determine how University grade point average, GPA (highest being 4.0) of...

The University Secretary wants to determine how University grade point average, GPA (highest being 4.0) of a sample of students from the University depends on a student’s high school GPA (HS), age of a student (A), achievement test score (AS), average number of lectures skipped each week (S), gender of a student (where M=1 if a student is male or 0 otherwise), computer or PC ownership of a student (where PC=1 if a student owns a computer or 0 otherwise), the means of transport to school (drive, bicycle or walk; where D=1 if a student drives to campus or 0 otherwise, B=1 if a student bicycles to campus or 0 otherwise), and finally, the subject major of the student (finance, human resource, marketing and accounting; where F=1 if a student majors in finance or 0 otherwise, HR=1 if a student majors in human resource or 0 otherwise, MR=1 if a student majors in marketing or 0 otherwise). Use the correlation matrix and dummy regression output to answer the questions.
GPA
HS
A
AS
S
M
PC
D
B
F
HR
MR
GPA
1.00
HS
0.41
1.00
A
-0.02
-0.26
1.00
AS
0.21
0.35
-0.08
1.00
S
-0.26
-0.09
-0.08
0.12
1.00
M
-0.08
-0.21
0.04
0.18
0.20
1.00
PC
0.22
0.04
-0.09
0.04
-0.21
-0.07
1.00
D
-0.11
-0.19
0.27
-0.20
0.26
-0.08
0.02
1.00
B
0.08
0.14
-0.05
0.16
-0.13
0.13
-0.10
-0.38
1.00
F
0.08
0.12
-0.22
0.18
0.06
0.04
0.08
-0.08
-0.11
1.00
HR
0.08
0.17
-0.49
0.08
0.06
0.05
-0.04
-0.11
0.07
-0.12
1.00
MR
-0.10
-0.19
0.37
-0.11
-0.05
0.02
0.05
0.08
0.01
-0.15
-0.79
1.00
a) Which 2 pairs of variables are most correlated with the regressand?
b) Which 3 pairs of variables are mostly multicollinear?
c) Identify 3 pairs of variables that are most correlated.
The estimated equation by OLS is:
Residual (df) =129, TSS=19.41, ESS=14.03.

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