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Comment On Solution Training Exercise 4 5 Part D PDF
Comment On Solution Training Exercise 4 5 Part D PDF
5 part d
The second ratio in the chain of equalities is inverted from what is intended.
The correct solution is as follows:
2 ∑ d
SE part (b) 1
(GPAi −5.95+0.17Genderi −0.24Participationi)
2
= 1000−3 ∑i
SE lecture2 1
1000−3 i
(GPAi −5.95+0.17Genderi −0.24Participationi )
2
0.637
= 0.564 = 1.129.
√
Since 1.129 = 1.063, the standard errors obtained in the second-stage
regression are about 6 percent too high.