A researcher is interested in the effect on test scores of computer usage. Using school district data

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A researcher is interested in the effect on test scores of computer usage. Using school district data like that used in this chapter, she regresses district average test scores on the number of computers per student. Will \(\hat{\beta}_{1}\) be an unbiased estimator of the effect on test scores of increasing the number of computers per student? Why or why not? If you think \(\hat{\beta}_{1}\) is biased, is it biased up or down? Why?

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Introduction To Econometrics

ISBN: 9780134461991

4th Edition

Authors: James Stock, Mark Watson

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