Consider the Following Least Squares Specification Between Testscores and the Student-Teacher

question 63

Multiple Choice

Consider the following least squares specification between testscores and the student-teacher ratio: $\widehat{\text { TestScore }}$ = 557.8 + 36.42 ln (Income) . According to this equation, a 1% increase income is associated with an increase in test scores of

• A)0.36 points
• B)36.42 points
• C)557.8 points
• D)cannot be determined from the information given here

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