Use the data in MEAPOO.RAW to answer this question.

(i) Estimate the model

by OLS, and report the results in the usual form. Is each explanatory variable statistically significant at the 5% level?

(ii) Obtain the fitted values from the regression in part (i). What is the range of fitted values? HOW does it compare with the range of the actual data on math4?

(iii) Obtain the residuals from the regression in part (i). What is the building code of the school that has the largest (positive) residual? Provide an interpretation of this residual.

(iv) Add quadratics of all explanatory variables to the equation, and test them for joint significance. Would you leave them in the model?

(v) Returning to the model in part (i), divide the dependent variable and each explanatory variable by its sample standard deviation, and rerun the regression. (Include an intercept unless you also first subtract the mean from each variable.) In terms of standard deviation units, which explanatory variable has the largest effect on the math pass rate?

Transcribed Image Text:

math4 =B₁ + B₂lexppp + ß₂lenroll + ßzlunch + u math4 =B₁ + B₂lexppp + ß₂lenroll + ßzlunch + u

Answer rating: 100% (QA)

i The estimated equation is Estimated Math4 9193 352 lexppp 540 lenroll 449 lunch 1996 210 094 015 n ... View the full answer