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:

Residual Income

The net income that an investment earns beyond the minimum rate of return.

Margin

Generally refers to the difference between the selling price and the cost of a product or service, often expressed as a percentage of the selling price.

Customer Service Department

A department in an organization responsible for managing questions, assisting customers with problems, and offering details about the company's products or services.

Operating Divisions

Different sectors or sections within a company that focus on specific operational tasks or business units.