# Project #80655 - 2 Econometrics Questions

2. Consider relating individual performance on a standardized test, score, to a variety of other variables. School factors include average class size, per student expenditures, average teacher compensation, and total school enrollment. Other variables specific to the student are family income, mother’s education, father’s education, and number of siblings.

The model is

score = β0 +β1classize+β2 expend+β3 tchcomp+β4 enroll+β5 faminc+ β6 motheduc+β7 fatheduc+β8 siblings+u,

State the null hypothesis that student-specific variables have no effect on standardized test performance, once school related factors have been controlled for. What test-statistic and critical value (1%) should you use for this example?

3. Your textbook extends the simple regression analysis of Chapters 4 and 5 by adding an additional explanatory variable, the percent of English learners in school districts (PctEl). The results are as follows:

TestˆScore = 698.9 − 2.28× STR (when regression is estimated without and PctEl)

TestˆScore = 696.0 −1.10× STR − 0.65× PctEL

Explain why you think the coefficient on the student-teacher ratio has changed so dramatically.

 Subject General Due By (Pacific Time) 09/01/2015 12:00 pm
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