We are interested in the effect on test scores of the student-teacher ratio. The table below...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
We are interested in the effect on test scores of the student-teacher ratio. The table below shows different regression ((1) to (5)) results with different regressors. All the five regressions use average test score as dependent variable and include the student-teacher ratio (X₁), as the variable of interest. Then different combinations of variables refer to the first column for variable names and what they measure) are used in each regression. Significance of each variable is indicated by * ( significant at the 5% level) or ** (significant at the 1% level). Dependent variable: average test score in the district. Regressor (1) Student-teacher ratio (X₁) -2.28⁰ (0.52) Percent English learners (X₂) Percent eligible for subsidized lunch (X3) Percent on public income assistance (X₂) Intercept Summary Statistics SER R² 698.9** (10.4) 11 18.58 0.049 420 (2) -1.10 (0.43) -0.650** (0.031) 686.0** (8.7) 14.46 (3) -1.00** (0.27) -0.122 (0.033) -0.547** (0.024) 700.2** (5.6) 9.08 0.773 420 (4) -1.31** (0.34) -0.488 (0.030) -0.790⁰* (0.068) 698.0** (6.9) 11.65 0.626 420 (5) -1.01. (0.27) -0.130** (0.036) -0.529** (0.038) 0.048 (0.059) 0.424 420 These regressions were estimated using the data on K-8 school districts in California, described in Appendix 4.1. Heteroskedas- ticity-robust standard errors are given in parentheses under coefficients. The individual coefficient is statistically significant at the *5% level or **1% significance level using a two-sided test. 700.4** (5.5) 9.08 0.773 420 (a) Consider (4) and (5). Note that X4 is added in both, but X3 is omitted in (4). i. Are there any bias-correction benefits of adding X3 in regression (5)? Examine the bias-correction benefit for X₁, X2, and X₁. ii. Is there a bias-variance tradeoff in estimating the coefficient of X₁ if X3 is added in regression (5)? Why or why not? (b) Consider (3) and (5). Note that X₁ is omitted in regression (3). i. Are there bias-correction benefits of adding X4 in regression (5)? Ex- amine the bias-correction benefit for X₁, X2, and X3. ii. Is there a bias-variance tradeoff in estimating the coefficients of X₁, X2, and X3 if X3 is added in regression (5)? Why or why not? We are interested in the effect on test scores of the student-teacher ratio. The table below shows different regression ((1) to (5)) results with different regressors. All the five regressions use average test score as dependent variable and include the student-teacher ratio (X₁), as the variable of interest. Then different combinations of variables refer to the first column for variable names and what they measure) are used in each regression. Significance of each variable is indicated by * ( significant at the 5% level) or ** (significant at the 1% level). Dependent variable: average test score in the district. Regressor (1) Student-teacher ratio (X₁) -2.28⁰ (0.52) Percent English learners (X₂) Percent eligible for subsidized lunch (X3) Percent on public income assistance (X₂) Intercept Summary Statistics SER R² 698.9** (10.4) 11 18.58 0.049 420 (2) -1.10 (0.43) -0.650** (0.031) 686.0** (8.7) 14.46 (3) -1.00** (0.27) -0.122 (0.033) -0.547** (0.024) 700.2** (5.6) 9.08 0.773 420 (4) -1.31** (0.34) -0.488 (0.030) -0.790⁰* (0.068) 698.0** (6.9) 11.65 0.626 420 (5) -1.01. (0.27) -0.130** (0.036) -0.529** (0.038) 0.048 (0.059) 0.424 420 These regressions were estimated using the data on K-8 school districts in California, described in Appendix 4.1. Heteroskedas- ticity-robust standard errors are given in parentheses under coefficients. The individual coefficient is statistically significant at the *5% level or **1% significance level using a two-sided test. 700.4** (5.5) 9.08 0.773 420 (a) Consider (4) and (5). Note that X4 is added in both, but X3 is omitted in (4). i. Are there any bias-correction benefits of adding X3 in regression (5)? Examine the bias-correction benefit for X₁, X2, and X₁. ii. Is there a bias-variance tradeoff in estimating the coefficient of X₁ if X3 is added in regression (5)? Why or why not? (b) Consider (3) and (5). Note that X₁ is omitted in regression (3). i. Are there bias-correction benefits of adding X4 in regression (5)? Ex- amine the bias-correction benefit for X₁, X2, and X3. ii. Is there a bias-variance tradeoff in estimating the coefficients of X₁, X2, and X3 if X3 is added in regression (5)? Why or why not?
Expert Answer:
Related Book For
Financial Reporting Financial Statement Analysis and Valuation a strategic perspective
ISBN: 978-1337614689
9th edition
Authors: James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
Posted Date:
Students also viewed these economics questions
-
The consumption of caffeine to benefit alertness is a common activity practiced by 90% of adults in North America. Often caffeine is used in order to replace the need for sleep. One recent study...
-
The design of a new multinational personnel selection system at MobilCom. Louisa is a senior HR manager at MobilCom, currently residing and working in the Kuala Lumpur (KL) office. She had completed...
-
In Exercise 3.82, we introduce a study to estimate the difference in mean immune response (as measured in the study) between tea drinkers and coffee drinkers. The data are given in Table 3.12 on page...
-
EarthTones, Inc., was a wholly owned subsidiary of Cutlinger Corporation. Several years ago, EarthTones acquired numerous oil leases and began exploration activities to determine their suitability...
-
A rigid tank contains water vapor at 250C and an unknown pressure. When the tank is cooled to 150C, the vapor starts condensing. Estimate the initial pressure in the tank. Answer: 0.60 MPa
-
Assume that you have shorted the put option in Problem 4. a. If the stock is trading at $8 in three months, what will you owe? b. If the stock is trading at $23 in three months, what will you owe? c....
-
In what situations would an interpleader procedure be used?
-
Campbell Corporation reports regular taxable income of $210,000 in the current year. Campbell takes into account the following facts when calculating the $210,000 amount. Campbell deducts $100,000...
-
Problem #4: As part of a promotion, you can buy a new living room set today and make no payments for 3 years. Starting exactly 3 years from today, you will make 5 annual payments of $1500 each. If...
-
On January 1, 2020, Wildhorse Leasing Inc., a lessor that uses IFRS 16, signed an agreement with Rock River Inc., a lessee, for the use of a compression system. The system cost $424,000 and Wildhorse...
-
Gary went to the Florence National Bank to inquire about funding for the new store location. He had found an abandoned furniture store in downtown Sumter along Main Street that was up for sale for...
-
Why is an auditor going to be interested in obtaining information about related parties in auditing an entity?
-
How are policy and procedures manuals likely to differ for large and small internal auditing departments? What kinds of information are likely to be included in such manuals?
-
Why may a common strategy be used for a group of assertions affected by the same class of transaction?
-
You are the external auditor of Kiwi Tours, a company which promotes New Zealand tours to the UK and owns a chain of duty-free shops. You have been auditing the company since it was listed on the...
-
What is a statement of purpose, authority, and responsibility, and how does it improve management of the internal auditing department?
-
The balance sheet and income statement shown below are for Koski Inc. Note that the firm has no amortization charges, it does not lease any assets, none of its debt must be retired during the next 5...
-
In 1995 Miguel purchased a home for $130,000. In 2000 he sold it for $170,000 and immediately purchased another one for $180,000, which he sold in 2007 for $235,000. How much taxable capital gain, if...
-
In conceptual terms, explain the value-to-book valuation approach. Explain how the value-to-book approach described and demonstrated in this chapter relates to the residual income valuation approach...
-
Exhibit 5.16 presents risk ratios for Coca-Cola for Year 1 through Year 3. REQUIRED a. Assess the changes in the short-term liquidity risk of Coca-Cola between Year 1 and Year 3. b. Assess the...
-
Explain free cash flows. Describe which types of cash flows are free and which are not. How do free cash flows available for debt and equity stakeholders differ from free cash flows available for...
-
In April 2023, HMRC issues a notice requiring an individual to submit a tax return for the year 2022-23. The return is submitted electronically to HMRC on 8 December 2023. (a) State the date by which...
-
Calculate the personal savings allowance available in 2023-24 to a taxpayer with taxable income for the year (i.e. net income less any available personal allowance) of: (a) 20,000 (b) 37,701 (c)...
-
Calculate the 2023-24 income tax liability of a non-Scottish taxpayer with taxable income (i.e. income remaining after deducting any available personal allowance) of: (a) 11,730 (b) 15,280 (c) 30,000...
Study smarter with the SolutionInn App