You have obtained data on test scores and student-teacher ratios in region A and region B of your state. Region B, on average, has lower student-teacher ratios than region A. You decide to run the following regression.
Yi = 0+ 1X1i + 2X2i + 3X3i+ui
where X1 is the class size in region A, X2 is the difference between the class size between region A and B, and X3 is the class size in region B. Your regression package shows a message indicating that it cannot estimate the above equation. What is the problem here and how can it be fixed? Explain the problem in terms of the rank of the X matrix.
What will be an ideal response?
Question 2
All of the following are good reasons for an applied econometrician to learn some econometric theory, with the exception of
A) turning your statistical software from a black box into a flexible toolkit from which you are able to select the right tool for a given job.
B) understanding econometric theory lets you appreciate why these tools work and what assumptions are required for each tool to work properly.
C) learning how to invert a 44 matrix by hand.
D) helping you recognize when a tool will not work well in an application and when it is time for you to look for a different econometric approach.
Energy budget for a temperate deciduous forest (data from Gosz et al. 1978).
Part of the physical map of the E. coli genome, obtained by sequencing
Bell Curve for Intelligence IQ scores for a population-based sample usually fall into this kind of
Region’s Culture in International Context
End Moraines of the Great Lakes Region
data