Suppose You've Been Hired by Your School's Admissions Department to Help

question 2

Essay

Suppose you've been hired by your school's admissions department to help them decide whether to change admissions procedures. You are given the files of all of the students in the last graduating class (including those students who didn't graduate) and told to build a model to explain why some admitted students graduate and others don't.
(a) Specify the functional form you would use in building such a model and carefully explain why that form is appropriate.
(b) Specify the independent variables you would include in the equation and briefly explain how they apply to the dependent variable in question.
(c) Carefully explain the meaning of the coefficient of your first independent variable.

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Definitions:

Total Cost

The aggregation of all costs, both fixed and variable, incurred by a business in producing a specific quantity of goods or services.

Average Fixed Cost

The fixed costs of production divided by the quantity of output produced; it decreases as production increases.

Average Variable Cost

The total variable costs divided by the quantity of output produced.

Total Variable Costs

The sum of all costs that vary with output level, including costs for raw materials, labor, and other expenses that increase with production.