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Suppose that a researcher, using data on class size (CS) and average test scores from 108 third-grade classes, estimates the OLS regression TestScore = 489

Economics Nov 21, 2020

Suppose that a researcher, using data on class size (CS) and average test scores from 108 third-grade classes, estimates the OLS regression TestScore = 489.176+(-5.4708) CS, R = 0.06, SER= 10.8. A classroom has 25 students. The regression's prediction for that classroom's average test score is (Round your response to two decimal places.) Last year a classroom had 22 students, and this year it has 26 students. The regression's prediction for the change in the classroom average test score is (Round your response to two decimal places) The sample average class size across the 108 classrooms is 20.12. The sample average of the test scores across the 108 classrooms is . (Hint: Review the formulas for the OLS estimators.) (Round your response to two decimal places.) The sample standard deviation of test scores across the 108 classrooms is .(Hint: Review the formulas for the R and SER.) (Round your response to one decimal place.)

Expert Solution

For a classroom of 25 students.

The regression's prediction for the average test score will be 489.176 + (- 5.4708)25 = 352.406

The regression's prediction for the change in the classroom average test score = -5.4708* change in classroom size

-5.4708 * ( 26 - 22)= -21.88

The sample average of test score across the 108 classrooms is

B0 + B1* CS = average test score

489.176 + (-5.4708)20.16 = 379.10

The sample standard deviation of test scores across 108 class rooms is given by = SER * √n = 10.8 * 10.3923048 = 112.24

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