Question

CLASSICAL LINEAR REGRESSION MODEL

Suppose you can construct a sample that includes 4 second grade students in different elementary schools. Data have been collected on each students’ name, gender, class size( total number of students in the class) and final math scores.

With data available, calculate all estimators of your model step by step. Note: You need to show how you calculate with details, IN EXCEL

ID	Name	Gender	Class	MathScores
1	John	M	23	80
2	Bella	F	16	89
3	Stephanie	F	20	84
4	Georgette	F	25	71

Answer 1

>> First we need to code gender as M--1 and F--0

The data will look like this

ID	Name	Gender	Class	MathScores
1	John	1	23	80
2	Bella	0	16	89
3	Stephanie	0	20	84
4	Georgette	0	25	71

Then, Our model for the regression is

MathScores = b0 + b1*Gender + b2*Class

>> Go to Excel>> copy this data>>Go to data tab>>Data analysis>> choose regression>> select mathscores column in Y axis >> select Gender+class column in X axis>> tick on label if you selected label while selecting X and Y axis>> select the output range where you want your results click ok

>> You will get plenty of table and graph based on your choice

>> The estimates from the model is given as

	Coefficients
Intercept	122.5
Gender	4.065574
Class	-2.02459

hence your regression model is

MathScores = 122.5 + 4.065574*Gender - 2.02459*Class