4. Spending on school renovations and new construction is financed through local bond elections. A bond initiative needs at least 50% approval (yes votes) in order to pass. You are hired by the state of Connecticut to examine the determinants of yes votes on local bond initiatives. To examine that issue, you estimate the following model: %Yes, = B, + B,Income, + B,Coll, + B,Children, + B, Private, + e, where %Yes, is the % of voters in school district įwho vote in favor of a bond issue, Income, is median household income in district i(measured in thousands of dollars), Coll, is the percent of voters with a college degree or higher in district i, Children, is the % of voters with school-age children and Private, is the percent of voters with children enrolled in private school. Means of the variables and regression results (with standard errors in parentheses) are presented below. Summary Statistics Variable Mean 50.2% %Yes Income (in thousands of 40.0 dollars) Cll Children 30% 40% Private 10% Results + 0.5 + 0.5 Coll, +0.1 10 - 0.8 %Yes, Income, Children, Private, (2.0) (0.1) (0.2) (0.2) (0.3) Obs = 400 Explained S.S. = 400 Unexplained S.S = 100
4. Spending on school renovations and new construction is financed through local bond elections. A bond initiative needs at least 50% approval (yes votes) in order to pass. You are hired by the state of Connecticut to examine the determinants of yes votes on local bond initiatives. To examine that issue, you estimate the following model: %Yes, = B, + B,Income, + B,Coll, + B,Children, + B, Private, + e, where %Yes, is the % of voters in school district įwho vote in favor of a bond issue, Income, is median household income in district i(measured in thousands of dollars), Coll, is the percent of voters with a college degree or higher in district i, Children, is the % of voters with school-age children and Private, is the percent of voters with children enrolled in private school. Means of the variables and regression results (with standard errors in parentheses) are presented below. Summary Statistics Variable Mean 50.2% %Yes Income (in thousands of 40.0 dollars) Cll Children 30% 40% Private 10% Results + 0.5 + 0.5 Coll, +0.1 10 - 0.8 %Yes, Income, Children, Private, (2.0) (0.1) (0.2) (0.2) (0.3) Obs = 400 Explained S.S. = 400 Unexplained S.S = 100
MATLAB: An Introduction with Applications
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Author:Amos Gilat
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Chapter1: Starting With Matlab
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Hi, Based on the attachment:
Note that the coefficient on Children i is not statistically different from zero. In light of that fact, would you recommend dropping this variable from the model? Why or why not?
Transcribed Image Text:4.
Spending on school renovations and new construction is financed through local
bond elections. A bond initiative needs at least 50% approval (yes votes) in order
to pass. You are hired by the state of Connecticut to examine the determinants of
yes votes on local bond initiatives. To examine that issue, you estimate the
following model:
%Yes, = B, + B,Income, + B,Coll, + B,Children, + B, Private, + e,
where %Yes, is the % of voters in school district įwho vote in favor of a bond
issue, Income, is median household income in district i(measured in thousands of
dollars), Coll, is the percent of voters with a college degree or higher in district i,
Children, is the % of voters with school-age children and Private, is the percent
of voters with children enrolled in private school. Means of the variables and
regression results (with standard errors in parentheses) are presented below.
Summary Statistics
Variable
Mean
50.2%
%Yes
Income (in thousands of
40.0
dollars)
Cll
Children
30%
40%
Private
10%
Results
+ 0.5
+ 0.5 Coll, +0.1
10
- 0.8
%Yes,
Income,
Children,
Private,
(2.0) (0.1)
(0.2)
(0.2)
(0.3)
Obs = 400 Explained S.S. = 400 Unexplained S.S = 100
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