Regression Discontinuity. A university offers scholarships to applicants based on their high school grade point averages (GPA).
Question:
Regression Discontinuity. A university offers scholarships to applicants based on their high school grade point averages (GPA). In 2016. any student who earned a 3.65 GPA or higher was offered a scholarship of S10,000 (scholar). We estimate if this program results in more students attending the university using data for 2,500 applicants. attend; = 0.38 +0.20(GPA, - 3.65) + 0.07scholar (0.09) (0.05) (0.03)
a) Interpret the coefficient on "GPA-3.65" in a sentence. Does this make sense? Explain
b) Interpret the coefficient on "scholar" in a sentence.
c) Explain what it means for the coefficient in part b) to be called a local average treatment effect.
d) is the effect of the scholarship on attending the university statistically significant at the 95% level?
e) What is the probability of a student attending the university if they have a GPA of 3.64? 3.66? D Draw graph of this regression equation and label the slope and the discontinuity,
Statistics The Exploration & Analysis Of Data
ISBN: 9780840058010
7th Edition
Authors: Roxy Peck, Jay L. Devore