Question: Exercise 4: Using 4,137 college students, the following equation was estimated by OLS:

where colgpa is measured on a four-point scale, hsperc is the percentile in the high school graduating class (defined so that, for example, hsperc = 5 means the top five percent of the class), and sat is the combined math and verbal scores on the student achievement test. How this model should be transformed in order to determine the effects of computer ownership on college grade point average? Explain.