### What is the estimated effect of str on testscr

Assignment Help Microeconomics
##### Reference no: EM13184809

Run a regression of testscr on str and avginc, where testscr and str are as above, and avginc is a measure of the average household in come in the school district.

a. What is the correlation between str and avginc. Does this correlation suggest the model specification suffers from serious multicolinearity?

b. What is the estimated effect of str on testscr?

c. Now create a scatterplot of testscr on avginc, and use OLS to fit a straight line to the data. Do you think this simple regression equation suffers from specification bias? If so, how?

d. What is the probability that all the population slope coefficients are actually zero, but the coefficients we estimated are different from zero due merely to random sampling variability? In other words, what is the probability that the R2 is actually zero? Explain how one conducts an F test to test such a hypothesis.

#### How was Malthus view different from Keynes

How was Malthus's view different from Keynes?How was the period during which he was writing affect this comparison?Does his feeling that the landed aristocracy should be pro

#### What can we say about the price elasticity of demand

What can we say about the price elasticity of demand for nicotine products (such as cigarettes, pipes, tobacco) in the group of nicotine addicted users, versus the group of

#### Determining dollar amount of opportunity cost

When Burton Denson graduated with honors from the American Trucking Academy, his father gave him a \$350,000 tractor-trailer rig. Recently, Burton was boasting to some fellow

#### What is the forecast for average annual earnings growth

Nike has significant sales in emerging markets. Assume that Nike announces that its earnings (reported in dollars) would be impacted by the depreciation of many of the emergin

#### Submit your substantive and timely narrative

Submit your substantive and timely narrative. Each narrative shall include proper APA style in-text citations and references to textbook and, at minimum, one external author

#### Evaluate the clean air act

Evaluate the Clean Air Act and determine if it has been effective from an economic standpoint. Explain your reasoning. Based on your evaluation of the Clean Air Act and addi

#### Argue that deficit spending promotes economic growth

Keynesian economists argue that deficit spending promotes economic growth because it stimulates aggregate demand in the economy. Monetary economists argue that the benefits of

#### Aggregate demand for goods and services

The Aggregate Demand for goods and services in an economy must at every moment equal the value of Real Gross Domestic Product because both are defined to be the sum of (C+I+