What is the estimated effect of str on testscr

Assignment Help Microeconomics

Reference no: EM13184809

Run a regression of testscr on str and avginc, where testscr and str are as above, and avginc is a measure of the average household in come in the school district.

a. What is the correlation between str and avginc. Does this correlation suggest the model specification suffers from serious multicolinearity?

b. What is the estimated effect of str on testscr?

c. Now create a scatterplot of testscr on avginc, and use OLS to fit a straight line to the data. Do you think this simple regression equation suffers from specification bias? If so, how?

d. What is the probability that all the population slope coefficients are actually zero, but the coefficients we estimated are different from zero due merely to random sampling variability? In other words, what is the probability that the R2 is actually zero? Explain how one conducts an F test to test such a hypothesis.

Reference no: EM13184809

Questions Cloud

What are technique employers can use to improve productivity : Most people are consumers, making demand decisions in product markets, and also workers, making supply decisions in resource markets. How do workers choose how much of their labor service they are willing to sell Is the quantity supplied likely to ..

Discuss the importance of the consumers role in the ecoonmy : Financial markets make it possible for those who have saved money to earn a reward by providing the financing for business formation and expansion. Business owners can seek financing through the stock market, the bond market, or the banking sector..

Explain an audit procedure : Identify the accounts affected and whether this will be an overstatement or understatement and creating fictitious inventory by adding false count sheets to the inventory count.

State the grignard reagent containing more carbon atoms : the Grignard reagent containing more carbon atoms with the carbonyl compound containing less carbon atoms and scheme two involves the reaction of the Grignard reagent containing less carbon atoms with the carbonyl compound containing more carbon a..

What is the estimated effect of str on testscr : What is the probability that all the population slope coefficients are actually zero, but the coefficients we estimated are different from zero due merely to random sampling variability In other words, what is the probability that the R2 is actual..

Find a data file ca school districts : First, read Fuguitt and Wilcox, pages 181-183. Then, from the Stock and Watson text Web site. find a data file CA school districts that contains data on school districts for 420 districts in California. A detailed description is given in CAschool..

Classify industries into the appropriate market structure : Include a brief explanation of each choice and indicate whether you were very sure of your choice or whether you thought the classification depends on how the market is defined Write a classifying each of the following industries into the appropriate..

Mn-cl stretching mode of a contaminate manganese chloride : The peak was assigned as a Mn-Cl stretching mode of a contaminate manganese chloride species. Why would you expect this to be an erroneous assignment? Suggest a more likely source of this IR absorption.

Ensure the integrity of information systems : Identify the security requirements which need to be in place to ensure the integrity of information systems in the organization and What measures will help to ensure that internal audit retains its independence

User Account

All Pages