Using the 420 Observations of the California School Data Set $\widehat{\text { TestScore }}$

question 54

Essay

Using the 420 observations of the California School data set from your textbook, you estimate the following relationship: $\widehat{\text { TestScore }}$ = 681.44 - 0.61LchPct
n=420, R²=0.75, SER=9.45
where TestScore is the test score and LchPct is the percent of students eligible for subsidized lunch (average = 44.7, max = 100, min = 0).
a. Interpret the regression result.
b. In your interpretation of the slope coefficient in (a)above, does it matter if you start your explanation with "for every x percent increase" rather than "for every x percentage point increase"?
c. The "overall" regression F-statistic is 1149.57. What are the degrees of freedom for this statistic?
d. Find the critical value of the F-statistic at the 1% significance level. Test the null hypothesis that the regression R²= 0.
e. The above equation was estimated using heteroskedasticity robust standard errors. What is the standard error for the slope coefficient?