How can you interpret the coefficient on meal_pct

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Reference no: EM132064514

First, the reason for this question is that I believe that nutrition plays a part in a student's ability to focus and excel in school. If a student is eligible for subsidized lunch, likely they are not receiving healthy nutritious meals for breakfast and dinner. And a lower average family income is probably related to students' ability to receive subsidized lunches. However, other factors besides for average income contribute to eligibility; for that reason, test scores may be affected differently when compared to meal_pct and/or avginc.

The formula for this:
average test score = B0 + B1meal_pct + B2avginc + B3(meal_pct*avginc) + u

The formula for creating a variable representing the B3 component (interaction term):
gen stud_fin_state = meal_pct*avginc

A regression on JUST scores and meal_pct:
reg testscrmeal_pct, r

Linear regression

 

Number of

obs =

420

 

F(1, 418)

=

1149.57


 

Prob > F

=

0.0000


 

R-squared

=

0.7548


 

Root MSE

=

9.4467


 

 

 

 


Robust





testscr Coef.

Std. Err.

t

P>t

[95% Conf.

Interval]

 

 

 




meal_pct -.6102858

.0179997

-33.91

0.000

-.645667

-.5749047

_cons 681.4395

.9853686

691.56

0.000

679.5026

683.3764

 

 

 




 






Finally, the regression which will test for the interactive relationship:
reg testscrmeal_pctavgincstud_fin_state, r

Linear regression

 

Number of

obs =

420

 

 

F(3, 416)

=

534.81

 

 

Prob > F

=

0.0000

 

 

R-squared

=

0.7820

 

 

Root MSE

=

8.9279

 

 

 

 


 

Robust




testscr

Coef.

Std. Err.

t

P>t

[95% Conf.

Interval]

 

 

 

 




meal_pct

-.4607132

.0341342

-13.50

0.000

-.5278102

-.3936162

avginc

.6188341

.0753697

8.21

0.000

.4706811

.766987

stud_fin_state

-.0043107

.0027813

-1.55

0.122

-.0097779

.0011564

_cons

667.6492

2.030945

328.74

0.000

663.657

671.6414

 

 

 

 




 







Based on what the two regressions show us, how can you interpret the coefficient on meal_pct? And the slight change between models one and two?

Is there a significant interactive relationship between the variables?

How could you visually (graphically) demonstrate?

Make sense out of that question and answer accordingly

Attachment:- Question.rar

Verified Expert

Multiple regression analysis is almost the same as simple linear regression. The only difference between simple linear regression and multiple regression is in the number of predictors (“x” variables) used in the regression. Simple regression analysis uses a single x variable for each dependent “y” variable.

Reference no: EM132064514

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10/8/2018 10:29:25 PM

First, the reason for this question is that I believe that nutrition plays a part in a student’s ability to focus and excel in school. If a student is eligible for subsidized lunch, likely they are not receiving healthy nutritious meals for breakfast and dinner. And a lower average family income is probably related to students’ ability to receive subsidized lunches. However, other factors besides for average income contribute to eligibility; for that reason, test scores may be affected differently when compared to meal_pct and/or avginc.

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