After reading this chapter's analysis of test scores and class size, an educator comments, In my experience,
Question:
STRsmall = 1 if STR < 20, and STRsmall = 0 otherwise;
STRmoderate = 1 if 20 < STR < 25, and STRmoderate = 0 otherwise; and
STRlarge = 1 if STR > 25, and STRlarge = 0 otherwise.
(a) Consider the regression TestScorei = β0 + β1STRsmalli + β2STRlarge; + ui. Sketch the regression function relating TestScore to STR for hypothetical values of the regression coefficients that are consistent with the educator's statement.
(b) A researcher tries to estimate the regression TestScorei = β0 + β1STRsmall + β2STRmoderatei + β3STRlargel + ui and finds that her computer crashes. Why?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Related Book For
Introduction to Econometrics
ISBN: 978-0133595420
3rd edition
Authors: James H. Stock, Mark W. Watson
Question Posted: