We are worried that there could be an omitted variable, namely the percentage of English learners in the school district: it is plausible that the ability to speak, read and write English is an important factor for successful learning. Therefore, students that are still learning English are likely to perform worse on tests than native speakers. Also, it is possible that the share of English-learning students is bigger in school districts where class sizes are relatively large (i.e., the student-to-teacher ratio is high): think of poor urban districts where a lot of immigrants live. Given this information, what is the expected direction of the bias on the coefcient for str.

MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
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Chapter1: Starting With Matlab
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We are worried that there could be an omitted variable, namely the percentage of English learners in the school district: it is plausible that the ability to speak, read and write English is an important factor for successful learning. Therefore, students that are still learning English are likely to perform worse on tests than native speakers. Also, it is possible that the share of English-learning students is bigger in school districts where class sizes are relatively large (i.e., the student-to-teacher ratio is high): think of poor urban districts where a lot of immigrants live. Given this information, what is the expected direction of the bias on the coefcient for str. 

 

- regress testscr str
Source
Model
Residual
Total
SS
str
_cons
7794.11004
144315.484
152109.594
df
1
418
419
testscr Coefficient Std. err.
-2.279808 .4798256
698.933 9.467491
MS
7794.11004
345.252353
363.030056
Number of obs
F(1, 418)
Prob > F
R-squared
t P>|t|
=
-4.75 0.000
73.82 0.000
=
=
Adj R-squared =
Root MSE
=
420
22.58
0.0000
0.0512
0.0490
18.581
[95% conf. interval]
-3.22298 -1.336637
680.3231
717.5428
Transcribed Image Text:- regress testscr str Source Model Residual Total SS str _cons 7794.11004 144315.484 152109.594 df 1 418 419 testscr Coefficient Std. err. -2.279808 .4798256 698.933 9.467491 MS 7794.11004 345.252353 363.030056 Number of obs F(1, 418) Prob > F R-squared t P>|t| = -4.75 0.000 73.82 0.000 = = Adj R-squared = Root MSE = 420 22.58 0.0000 0.0512 0.0490 18.581 [95% conf. interval] -3.22298 -1.336637 680.3231 717.5428
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