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Using the California School Data Set from Your Textbook, You  TestScr^\widehat {\text { TestScr} }

question 49

Essay

Using the California School data set from your textbook, you run the following regression:  TestScr^\widehat {\text { TestScr} } = 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 σ^β^1=0.52\hat { \sigma } _ { \hat { \beta} _ { 1 } } = 0.52 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?

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Definitions:

Empathy

The ability to understand and share the feelings of another.

Tact

A keen sense of what to say or do to maintain good relations with others or avoid offense.

Cognitive Complexity

An individual's ability to perceive, differentiate, and organize information with varying degrees of detail and perspective.

Simplistic Terms

Descriptions or explanations that are overly simple and fail to capture the complexity of the subject matter.

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