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Estimate the population regression model: In(TestScore) - Bo+Biln(STR) + B2lncome, + Balunch, + u, where In(x) denotes the natural log of x. Note that the R-function log() oomputes the natural log, i.e., log(x) oomputes the natural log of x. Choose the correct statement

Estimate the population regression model: In(TestScore) - Bo+Biln(STR) + B2lncome, + Balunch, + u, where In(x) denotes the natural log of x. Note that the R-function log() oomputes the natural log, i.e., log(x) oomputes the natural log of x. Choose the correct statement

MATLAB: An Introduction with Applications
MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
Section: Chapter Questions
Problem 1P
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QUESTION 6 Estimate the population regression model: In(TestScore) - Bo+Biln(STR) + Bzlncome, + BaLunch, + u, where In(x) denotes the natural log of x. Note that the R-function log() computes the natural log, i.e., log(x) computes the natural log of x. Choose the correct statoment. Oa We should not have included income tand Lunch because the hypothenin that B, = 0 and B, -0 and cannot be rejected at the 5% significance level. O b.The model here is worse than the models in Question 1 and Question 4 because the model here has the smallest g2 among the three models. OC The estimated elasticity of TestScore lo STRs approximately -0.0167 and it is significant at the 5% level. Od. The estimation results suggest that a 1% increase in STR would reduce TestScore by 1.67 points on the test. O e. The estimation results suggest that decreasing STR by one student would induce a 1.67 percent increase in TestScore.
Transcribed Image Text:QUESTION 6 Estimate the population regression model: In(TestScore) - Bo+Biln(STR) + Bzlncome, + BaLunch, + u, where In(x) denotes the natural log of x. Note that the R-function log() computes the natural log, i.e., log(x) computes the natural log of x. Choose the correct statoment. Oa We should not have included income tand Lunch because the hypothenin that B, = 0 and B, -0 and cannot be rejected at the 5% significance level. O b.The model here is worse than the models in Question 1 and Question 4 because the model here has the smallest g2 among the three models. OC The estimated elasticity of TestScore lo STRs approximately -0.0167 and it is significant at the 5% level. Od. The estimation results suggest that a 1% increase in STR would reduce TestScore by 1.67 points on the test. O e. The estimation results suggest that decreasing STR by one student would induce a 1.67 percent increase in TestScore.
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