Question

Suppose we want to estimate the effects of alcohol consumption (alcohol) on college grade point average (cGPA). In addition to collecting information on grade point averages and alcohol usage, we also obtain attendance information (say, percentage of lectures attended, called attend). A standardized test score (say, SAT) and high school GPA (hsGPA) are also available
(i) Should we include attend along with alcohol as explanatory variables in a multiple regression model? (Think about how you would interpret beta-alcohol.)
(ii) Should SAT and hsGPA be included as explanatory variables? Explain.

Answer 1

Answer: See explanation

Explanation:

(i) Should we include attend along with alcohol as explanatory variables in a multiple regression model? (Think about how you would interpret beta-alcohol.)

No. We should not include attend along with alcohol as explanatory variables in a multiple regression model. This is due to the fact that a high degree of negative correlation exists between attend along with alcohol and including both of them will bring about multi collinearity.

(ii) Should SAT and hsGPA be included as explanatory variables? Explain.

Yes. SAT and hsGPA should be included as explanatory variables. This is important to overcome bias of the model.

Answer 2

• When Should we include Attend along with alcohol as explanatory variables in a multiple regression model

(i) So according to me, my answer will be No. We should not include Attend along with alcohol as explanatory variables in multiple factors of the regression model. This is due to the fact that is a high degree of negative correlation exists between the attend also, along with alcohol, and including both of them will bring about multicollinearity.

(ii) When the variables  of SAT AND hsGPA my answer will be Yes. SAT and HSDPA should be included as explanatory variables. This is most important to overcome the bias of the model.

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