ECO327Y5 Study Guide - Midterm Guide: Statistical Significance, F-Test, Confidence Interval
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17. 7 for the immediate purpose of determining the variables that explain whether accepted applicants choose to enroll, there is not a sample selection problem. The population of interest is applicants accepted by the particular university, and you have a random sample from this population. The model can be estimated, by ols or maximum likelihood, using the random sample from accepted students, and the estimators will be consistent and asymptotically normal. If the university is hoping the applicant pool changes in the near future, then there is a potential sample selection problem: the current students that apply may be systematically different from students that may apply in the future. As the nature of the pool of applicants is unlikely to change dramatically over one year, the sample selection problem can be mitigated, if not entirely eliminated, by updating the analysis after each first-year class has enrolled.
