At the Stock and Watson (Http://www

question 48

Essay

At the Stock and Watson (http://www.pearsonhighered.com/stock_watson)website, go to Student Resources and select the option "Datasets for Replicating Empirical Results." Then select the "California Test Score Data Used in Chapters 4-9" and read the data either into Excel or STATA (or another statistical program). First run a regression where the dependent variable is test scores and the independent variable is the student-teacher ratio. Record the regression R². Then run a regression where the dependent variable is the student-teacher ratio and the independent variable is test scores. Record the regression R² from this regression. How do they compare?

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Definitions:

Simultaneous Game

A game theory concept where all players make their decisions at the same time, without knowledge of the other players' decisions.

Sequential Games

Games in which players make decisions one after another, with each being aware of the previous players' decisions.

Monopolized

A market scenario where a single company or entity has exclusive control over the production, sales, and distribution of a product or service, limiting competition.

Sequential Game

A strategic game in game theory where players make decisions one after another rather than simultaneously, allowing for the observation of previous moves before making a decision.