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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:

Hypothalamus

A region of the brain that controls many bodily functions, including hunger, thirst, body temperature, and emotional activity.

Medulla

A part of the brainstem essential for controlling involuntary functions like breathing and heart rate.

Endocrine System

A network of glands in the body that secretes hormones directly into the circulatory system to regulate various bodily functions.

Nervous System

The network of nerve cells and fibers that transmits nerve impulses between parts of the body, including the brain, spinal cord, and peripheral nerves.

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