To Compare the Slope Coefficient from the California School Data $\widehat {\text { TestScr }}$

question 27

Essay

To compare the slope coefficient from the California School data set with that of the Massachusetts School data set, you run the following two regressions:
$\widehat {\text { TestScr }}$ _CA = 2.35 - 0.123×STR_{CA
(0.54)(0.027)
n = 420, R}^{2 = 0.051, SER = 0.98}
$\widehat {\text { TestScr }}$ _MA = 1.97 - 0.114×STR_{MA
(0.57)(0.033)
n = 220, R}^{2 = 0.067, SER = 0.97}
Numbers in parenthesis are heteroskedasticity-robust standard errors, and the LHS variable has been standardized.
Calculate a t-statistic to test whether or not the two coefficients are the same. State the alternative hypothesis. Which level of significance did you choose?

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