You Have Obtained Data on Test Scores and Student-Teacher Ratios $$Y _ { i } = \beta _ { 0 } + \beta _ { 1 } X _ { 1 i } + \beta _ { 2 } X _ { 2 i } + \beta _ { 3 } X _ { 3 i } + u _ { i }$$

question 39

Essay

You have obtained data on test scores and student-teacher ratios in region A and region B
of your state.Region B, on average, has lower student-teacher ratios than region A.You
decide to run the following regression $$Y _ { i } = \beta _ { 0 } + \beta _ { 1 } X _ { 1 i } + \beta _ { 2 } X _ { 2 i } + \beta _ { 3 } X _ { 3 i } + u _ { i }$$ where X1 is the class size in region A, X2 is the difference in class size between region A
and B, and X3 is the class size in region B.Your regression package shows a message
indicating that it cannot estimate the above equation.What is the problem here and how
can it be fixed?

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Definitions:

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The set of financial records and accounts maintained by a subsidiary, detailing its transactions, assets, liabilities, and equity.

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The selling price of an asset or the payment required to settle a liability in a regulated transaction with market participants, at the time of appraisal.

Net Assets

The total assets of an entity minus its total liabilities, representing the owners' equity.

Fair Market Value

The estimated price at which an asset or service would change hands between a willing buyer and seller, neither being under any compulsion to buy or sell and both having reasonable knowledge of relevant facts.