Using data from a random sample of elementary schools, a researcher regresses average test scores on the

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Using data from a random sample of elementary schools, a researcher regresses average test scores on the fraction of students who qualify for reduced-price meals. The regression indicates a negative coefficient that is highly statistically significant and yields a high \(R^{2}\). Is this regression useful for determining the causal effect of school meals on student test scores? Why or why not? Is this regression useful for predicting test scores? Why or why not?

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Introduction To Econometrics

ISBN: 9780134461991

4th Edition

Authors: James Stock, Mark Watson

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