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

question 49

Essay

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