To Compare the Slope Coefficient from the California School Data

question 35

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: CA = 2.35 - 0.123×STRCA
(0.54)(0.027)
n = 420,R2 = 0.051,SER = 0.98 MA = 1.97 - 0.114×STRMA
(0.57)(0.033)
n = 220,R2 = 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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