d. Being a good Econometrics student, you know that atndre should be endogenous. Explain why.

e. If you have data on the distance from where a student lives to the lecture hall (call it dist), explain why you can utilize this information to tackle endogeneity. Write down the STATA code you would run to get your new estimates.

A not very good hypothetical Econometrics student estimated a model that tries to explain the standardized outcome on a huge ECON101 final exam (stndfnl) in terms of percentage of classes attended (atndrte), prior college GPA (priGPA), and ACT score (ACT). Regression output is provided below. Regular standard errors are presented in parenthesis. = stndfnl = -0.021atndrte + 0.082ACT 0.555priGPA + 0.011atndrte * priGPA (0.002) (0.011) (0.078) (0.004) n=680 R2=0.201 Assume that the data on stndfnl, ACT, and priGPA are obtained from the registry of the university, so they are not subject to measurement error. Atndre, on the other hand, are collected from students through a survey at the end of the semester. A not very good hypothetical Econometrics student estimated a model that tries to explain the standardized outcome on a huge ECON101 final exam (stndfnl) in terms of percentage of classes attended (atndrte), prior college GPA (priGPA), and ACT score (ACT). Regression output is provided below. Regular standard errors are presented in parenthesis. = stndfnl = -0.021atndrte + 0.082ACT 0.555priGPA + 0.011atndrte * priGPA (0.002) (0.011) (0.078) (0.004) n=680 R2=0.201 Assume that the data on stndfnl, ACT, and priGPA are obtained from the registry of the university, so they are not subject to measurement error. Atndre, on the other hand, are collected from students through a survey at the end of the semester