Financial Aid Data

The purpose of this case study report is to determine financial aid awarded to college students using the financial aid data.

The scope of this study will provide the reader regression analysis based on parents contribution, their GPA rank, and gender award variations of financial aid.

The methodology used to explain the __________function is in the light of ________ function which expresses _______________. In the end estimated equations were used to predict the level of personal consumer expenditures (PCE) in the future.

Keynesian consumption functions specifically states: Const = 0 + 1 YDt + ut,

Where: Const: aggregate personal consumer expenditures (PCE) in year t.

YDt: Disposable income in year t

1 is called the marginal propensity to consumer (MPC). Economists have found that the value of MPC differs in the short run and the long run. Economists also found that in the long run the proper form of the consumption function is: Const = 1 YDt + ut

Using the “Consumption fn Data” file we run two regressions to estimate the consumption function in the U.S:

• Estimated the short run consumption function in the U.S. using 1960 to 1980 data

• Estimated the long run consumption function in the U.S. using 1960 to 2010 data

In this section we will analyze the financial aid awarded to students based on the parent’s contribution. According to our estimated equation, the predicted financial aid awarded to a student whose parents did not contribute any money for the college expenses will be:

FINi = 15,898.36 - 0.344 Parenti

According to our estimate, the predicted financial aid awarded to a student whose parent’s contribution is increased by $1,000 for the college expenses will be:

FINi = - 0.344 Parenti

FINi = - 0.344(1,000)

FINi = -$344

According to our estimate, the predicted financial aid awarded to Bob whose parent’s contribution is increased by $10,000 for his college expenses will be:

FINi = 15,898.36 - 0.344 Parenti

FINi =...