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Suppose you are interested in the effect that the amount of time high school students spend in an after-school tutoring program has on their university

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Suppose you are interested in the effect that the amount of time high school students spend in an after-school tutoring program has on their university entrance score as measured by the Australian Tertiary Admissions Rank (ATAR). Define the following variables: ATAR: students' Australian Tertiary Admissions Rank (number between 0.0 -99.95). Note, a higher rank indicates better student performance. Hours: the hours students spend in after-school tutoring. Using the information above, answer the following 4 questions.[i] Assume you are given access data on Hours and ATAR from a random sample of high-school students. Suppose you estimate the following linear regression model: ATAR = Bo + B1 Hours + u[iii] What are the implications for your statistical interpretation of the effect of tutoring on ATAR scores if E (u x) / 0? [3 marks] [iv] What are the implications for your practical interpretation of the effect of tutoring on ATAR scores if E (u | x) / 0 ? [3 marks]

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