Using the California School data set from your textbook,you run the following regression: = 698.9 - 2.28 STR
n = 420,R2 = 0.051,SER = 18.6
where TestScore is the average test score in the district and STR is the student-teacher ratio.Using heteroskedasticity robust standard errors,you find while choosing the homoskedasticity-only option,the standard error is 0.48.
a.Calculate the t-statistic for both standard errors.
b.Which of the two t-statistics should you base your inference on?

Question

Using the California School data set from your textbook,you run the following regression:  = 698.9 - 2.28 STR
n = 420,R2 = 0.051,SER = 18.6
where TestScore is the average test score in the district and STR is the student-teacher ratio.Using heteroskedasticity robust standard errors,you find  while choosing the homoskedasticity-only option,the standard error is 0.48.
a.Calculate the t-statistic for both standard errors.
b.Which of the two t-statistics should you base your inference on?

Quizplus · Accepted Answer

The Answer of Using the California School data set from your textbook,you run the following regression:  = 698.9 - 2.28 STR
n = 420,R2 = 0.051,SER = 18.6
where TestScore is the average test score in the district and STR is the student-teacher ratio.Using heteroskedasticity robust standard errors,you find  while choosing the homoskedasticity-only option,the standard error is 0.48.
a.Calculate the t-statistic for both standard errors.
b.Which of the two t-statistics should you base your inference on?

Using the California School Data Set from Your Textbook,you Run