Suppose you estimate the equation colGPA = Bo + B1faminc+ B,hsGPA+ B3SAT + u where faminc is a student's family income that is reported on a survey when the student is in college. Because the data are self reported, you believe that the family income data recorded in faminc is not the exact income that a family has, but rather an approximation or best-guess. Which of the following is likely to be true about the estimated relationship between family income and college GPA B1 and the true relationship between family income and college GPA B1? A. E(ß1) = B1 B. E(B1) > B1 C. E(B) < B1 D. E(3) = 0

Suppose you estimate the equation colGPA = Bo + B1faminc+ B,hsGPA+ B3SAT + u where faminc is a student's family income that is reported on a survey when the student is in college. Because the data are self reported, you believe that the family income data recorded in faminc is not the exact income that a family has, but rather an approximation or best-guess. Which of the following is likely to be true about the estimated relationship between family income and college GPA B1 and the true relationship between family income and college GPA B1? A. E(ß1) = B1 B. E(B1) > B1 C. E(B) < B1 D. E(3) = 0

Microeconomics A Contemporary Intro

10th Edition

ISBN:9781285635101

Author:MCEACHERN

Publisher:MCEACHERN

Chapter18: Income Distribution And Poverty

Section: Chapter Questions

Problem 4QFR

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