Question 2
A recent study on factors that affect college GPAs was published at Jacob's University. The
dean of your faculty questioned the results and asked you to apply the concepts you learned
in the econometrics class to confirm whether these factors have any relevance in the study.
From your review of the database of the study you decided to examine the relationships
among college GPA (colGPA), high school GPA (hsGPA), achievement test score (ACT), and
the average number of days per week alcohol is consumed (alcohol).
+ The \"gpa1\" Eviews work file is the database you will use for your assessment
+ Ensure you select the correct variables of interest from the work file and formulate your
equation accordingly
a) Based on the data given in the EIVEWS file, write a suitable regression model that
would allow you to investigate the relationship of the factors mentioned on college
GPA.
b) State (and explain) your a-priori expectations of the coefficients in your model (Do not
plagiarise. Be sure to reference!) Note, stating \"we expect the coefficient on the XYZ
variable to be positive/negative\" is not enough.