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(b) Using a cross-country data of 38 countries, we obtain the following equation: Log(eduexp)= -5.43 + 1.23 log(GDP), -0.16 log(population) : R = 0.8853 (se) %3D (0.81) (0.079) (0.078) where eduexp: Education Expenditures (in $000), GDP: Gross Domestic Product (000$), and population (million) for several Countries. Obtain the t-statistic for the population coefficient and test if this coefficient is significantly different from zero. Clearly explain your answer with the help of a diagram. (c) Report the elasticity of education spending with respect to changes in population. Provide justification for your answer. (d) Test using appropriate procedure if GDP and population are jointly significantly different from zero.

(b) Using a cross-country data of 38 countries, we obtain the following equation: Log(eduexp)= -5.43 + 1.23 log(GDP), -0.16 log(population) : R = 0.8853 (se) %3D (0.81) (0.079) (0.078) where eduexp: Education Expenditures (in $000), GDP: Gross Domestic Product (000$), and population (million) for several Countries. Obtain the t-statistic for the population coefficient and test if this coefficient is significantly different from zero. Clearly explain your answer with the help of a diagram. (c) Report the elasticity of education spending with respect to changes in population. Provide justification for your answer. (d) Test using appropriate procedure if GDP and population are jointly significantly different from zero.

A First Course in Probability (10th Edition)
A First Course in Probability (10th Edition)
10th Edition
ISBN:9780134753119
Author:Sheldon Ross
Publisher:Sheldon Ross
Chapter1: Combinatorial Analysis
Section: Chapter Questions
Problem 1.1P: a. How many different 7-place license plates are possible if the first 2 places are for letters and...
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(b) Using a cross-country data of 38 countries, we obtain the following equation: Log(eduexp)= -5.43 + 1.23 log(GDP), -0.16 log(population) ; R? = 0.8853 (se) (0.81) (0.079) (0.078) where eduexp: Education Expenditures (in $000), GDP: Gross Domestic Product (000$), and population (million) for several Countries. Obtain the t-statistic for the population coefficient and test if this coefficient is significantly different from zero. Clearly explain your answer with the help of a diagram. (c) Report the elasticity of education spending with respect to changes in population. Provide justification for your answer. (d) Test using appropriate procedure if GDP and population are jointly significantly different from zero.
Transcribed Image Text:(b) Using a cross-country data of 38 countries, we obtain the following equation: Log(eduexp)= -5.43 + 1.23 log(GDP), -0.16 log(population) ; R? = 0.8853 (se) (0.81) (0.079) (0.078) where eduexp: Education Expenditures (in $000), GDP: Gross Domestic Product (000$), and population (million) for several Countries. Obtain the t-statistic for the population coefficient and test if this coefficient is significantly different from zero. Clearly explain your answer with the help of a diagram. (c) Report the elasticity of education spending with respect to changes in population. Provide justification for your answer. (d) Test using appropriate procedure if GDP and population are jointly significantly different from zero.
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