Question: Suppose you were hired by the Worcester College Student Government Association (SGA) to estimate how much WorcesterCollege students spend on economics text books in a semester.
Write an econometric model which allows you to estimate the amount that students spend on economics textbooks. Be sure to explain your dependent variable and independent variables, including binary variables and interaction or quadratic variables.
Explain two estimation techniques you can use to estimate the amount that students spend on economics textbooks. What are the advantages and disadvantages of your estimation techniques?