Suppose that based on a sample of high schools, a researcher estimates via OLS the regression model Yi 30,1 + 12,i30,2 + x3,iß0,3 + x4,i³0,4 + U₁ where y, denotes the percentage of students passing the grade 10 math test in high school i, a2,i denotes average annual teacher compensation in high school i, x3, denotes 1000* (staff to student ratio) in high school i and 4,i denotes student enrollment in high school i. Part of the Stata output is given on the following page. Using this output, test whether the data are consistent with the belief that an increase in the staff to student ratio leads to an increase in the percentage of students that pass the grade 10 math test. Be sure to justify your conclusion clearly.

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Chapter1: Starting With Matlab
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Suppose that based on a sample of high schools, a researcher estimates
via OLS the regression model
Yi = 30,1 + 2,0,2 + x3,130,3 + x4,iß0,4 + Ui
where y, denotes the percentage of students passing the grade 10 math
test in high school i, x2, denotes average annual teacher compensation in
high school i, 3, denotes 1000 * (staff to student ratio) in high school i and
4,i denotes student enrollment in high school i. Part of the Stata output is
given on the following page. Using this output, test whether the data are
consistent with the belief that an increase in the staff to student ratio leads
to an increase in the percentage of students that pass the grade 10 math
test. Be sure to justify your conclusion clearly.
Stata output for Question 2(c):
Source I
Total I
SS
Model | 2422.93434
3
Residual | 42394.2462 404
y I
df
44817.1805 407
Coef.
x_2 I
. 0004586
x_31
.0479199
-.0001976
x_4 |
_cons | 2.274021
807.644779
104.936253
MS
110.115923
Std. Err.
.0001004
.039814
.0002152
6.113794
t P>|t|
4.57 0.000
1.20 0.229
-0.92 0.359
0.37 0.710
Number of obs =
F( 3, 404) =
Prob > F
R-squared
Adj R-squared
Root MSE
408
7.70
0.0001
= 0.0541
0.0470
= 10.244
.0002613
-.0303487
-.0006207
-9.744801
=
[95% Conf. Interval]
.0006559
.1261884
.0002255
14.29284
Transcribed Image Text:Suppose that based on a sample of high schools, a researcher estimates via OLS the regression model Yi = 30,1 + 2,0,2 + x3,130,3 + x4,iß0,4 + Ui where y, denotes the percentage of students passing the grade 10 math test in high school i, x2, denotes average annual teacher compensation in high school i, 3, denotes 1000 * (staff to student ratio) in high school i and 4,i denotes student enrollment in high school i. Part of the Stata output is given on the following page. Using this output, test whether the data are consistent with the belief that an increase in the staff to student ratio leads to an increase in the percentage of students that pass the grade 10 math test. Be sure to justify your conclusion clearly. Stata output for Question 2(c): Source I Total I SS Model | 2422.93434 3 Residual | 42394.2462 404 y I df 44817.1805 407 Coef. x_2 I . 0004586 x_31 .0479199 -.0001976 x_4 | _cons | 2.274021 807.644779 104.936253 MS 110.115923 Std. Err. .0001004 .039814 .0002152 6.113794 t P>|t| 4.57 0.000 1.20 0.229 -0.92 0.359 0.37 0.710 Number of obs = F( 3, 404) = Prob > F R-squared Adj R-squared Root MSE 408 7.70 0.0001 = 0.0541 0.0470 = 10.244 .0002613 -.0303487 -.0006207 -9.744801 = [95% Conf. Interval] .0006559 .1261884 .0002255 14.29284
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