(4 points) Mel and Tara are married and file jointly for 202…

(4 points) Mel and Tara are married and file jointly for 2024. They earned $195,000 in total salaries together for the year working for an architecture and construction firm. They moved across the country when Tara was offered a new job opportunity within the company this year, incurring $7,500 in moving expenses. The moving expenses were not reimbursed by their employer. As part of the move, Mel and Tara had to sell their house this year. They had purchased the home in 2018 and after making some improvements to the home its adjusted tax basis at the time of sale was $310,000. They sold it for $575,000. They also paid $1,500 in interest on loans Mel took out to pay for his tuition and fees as an undergraduate architecture major. After the move, Mel had some health issues which required the couple to pay $3,000 in medical expenses (part for health insurance premiums and part deductibles and other out-of-pocket expenses for hospital care). Mel and Tara’s AGI for 2024 is:  

An economist wants to know the determinants of college GPA. …

An economist wants to know the determinants of college GPA.  She tracks the behavior of on-campus college students for 24 hours each and classifies every activity they do as either class, work, studying, leisure, sleep, or other.  She then estimates the following regression model: She comes to you for advice before running her regression.  What advice do you give her about her empirical strategy?  

(4 points) Mel and Tara are married and file jointly for 202…

(4 points) Mel and Tara are married and file jointly for 2024. They earned $195,000 in total salaries together for the year working for an architecture and construction firm. They moved across the country when Tara was offered a new job opportunity within the company this year, incurring $7,500 in moving expenses. The moving expenses were not reimbursed by their employer. As part of the move, Mel and Tara had to sell their house this year. They had purchased the home in 2018 and after making some improvements to the home its adjusted tax basis at the time of sale was $310,000. They sold it for $575,000. They also paid $1,500 in interest on loans Mel took out to pay for his tuition and fees as an undergraduate architecture major. After the move, Mel had some health issues which required the couple to pay $3,000 in medical expenses (part for health insurance premiums and part deductibles and other out-of-pocket expenses for hospital care). Ignoring the answer in Part 1 and instead assuming AGI is $100,000, the amount of itemized deductions Mel and Tara could potentially claim for 2024 is:  

A dean is trying to evaluate the quality of instruction of t…

A dean is trying to evaluate the quality of instruction of the professors in her college. At the end of every semester students evaluate the professors on a scale of 1 to 10 with 10 being outstanding and 1 being horrible. Label this score yi. The dean gives an award to the 5 professors with the highest scores. A faculty member with some statistical training notes that grades tend to be higher in classes that are graded more easily. Let xi  be the class average GPA and the professor runs a regression of the form: Professors that give higher grades tend to have much higher teacher evaluations. The professor suggests that awards should be adjusted for how easily a professor grades. Without adding other variables to the model, explain how one could adjust teaching scores to reflect the fact that some teachers are easier graders than others in awarding the teaching prize.  

An economist wants to know the determinants of college GPA. …

An economist wants to know the determinants of college GPA.  She tracks the behavior of on-campus college students for 24 hours each and classifies every activity they do as either class, work, studying, leisure, sleep, or other.  She then estimates the following regression model: She comes to you for advice before running her regression.  What advice do you give her about her empirical strategy?