SCENARIO 14-15
the Superintendent of a School District Wanted to Predict

question 264

True/False

SCENARIO 14-15
The superintendent of a school district wanted to predict the percentage of students passing a sixth-
grade proficiency test. She obtained the data on percentage of students passing the proficiency test
(% Passing), mean teacher salary in thousands of dollars (Salaries), and instructional spending per
pupil in thousands of dollars (Spending) of 47 schools in the state. Following is the multiple regression output with $Y = \%$ Passing as the dependent variable, $X _ { 1 } =$
Salaries and $X _ { 2 } =$ Spending:

$\begin{array}{lr}\hline {\text { Regression Statistics }} \\\hline \text { Multiple R } & 0.4276 \\\text { R Square } & 0.1828 \\\text { Adjusted R Square } & 0.1457 \\\text { Standard Error } & 5.7351 \\\text { Observations } & 47 \\\hline\end{array}$

ANOVA


$\begin{array}{lrrrrrr}\hline & \text { Coefficients } & \text { Standard Error } & \text { t Stat } & \rho \text {-value } & \text { Lower 95\% } & \text { Upper 95\% } \\\hline \text { Intercept } & -72.9916 & 45.9106 & -1.5899 & 0.1190 & -165.5184 & 19.5352 \\\text { Salary } & 2.7939 & 0.8974 & 3.1133 & 0.0032 & 0.9853 & 4.6025 \\\text { Spending } & 0.3742 & 0.9782 & 0.3825 & 0.7039 & -1.5972 & 2.3455 \\\hline\end{array}$

-Referring to Scenario 14-15, you can conclude definitively that mean teacher
salary individually has no impact on the mean percentage of students passing the proficiency test,
taking into account the effect of instructional spending per pupil, at a 1% level of significance
based solely on but not actually computing the 99% confidence interval estimate for ?1.

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Definitions:

Free Market

A system of voluntary exchange in which every agent is free to produce, buy, and sell “as the market will bear,” without interference or standards set by any outside authority.

Economic Arrangements

The structured and systemic ways in which economic activities and resources are organized, distributed, and managed within a society or between entities.

Minimal Government

A political philosophy that advocates for a government with the least amount of power necessary to maintain social order and protect individual rights.

Anarchy

A state of confusion and social disorder where, in lieu of a ruling government, everyone is allowed to or is able to do whatever he or she wants.