Lets suppose that each year a large university admits exactly 3,000 students into its incoming class. In the year 2000, 60 students were economics majors. In the year 2020, 187 students were economics majors.

a. Calculate the proportional change of economics majors from 2000 to 2020.
b. Calculate the percentage change of economics majors from 2000 to 2020.
C. Calculate the percentage point change of economics majors from 2000 to 2020.
Recall the simple linear regression model: Vi = Bo + B1x + U; Suppose the covariance of x and y = 50, the variance of x = 10, the variance of y = 5, the mean of x is 600, and the mean of y is 800.
a. Given the covariance of x and y, how strong is the relationship between x and y?
b. Calculate the estimated B1 slope parameter.
c. Calculated the estimated B1 slope parameter.
d. Write the sample regression model.
8.
Formulate a case for omitted variable bias in a model that regresses blood alcohol content (dependent variable, y) on accidents at the scene (independent variable, X1), but omits an important variable, x2.
Give an example of what this variable might be
Explain the direction of the bias on the ß coefficient.
Explain whether the By coefficient is over- or under estimated.