ECO327Y5 Study Guide - Midterm Guide: Michigan Educational Assessment Program
Document Summary
9. 3 (i) eligibility for the federally funded school lunch program is very tightly linked to being economically disadvantaged. Therefore, the percentage of students eligible for the lunch program is very similar to the percentage of students living in poverty. equation. The variables log(expend) and lnchprg are negatively correlated: school districts with poorer children spend, on average, less on schools. Further, (ii) we can use our usual reasoning on omitting important variables from a regression. From table 3. 2, omitting lnchprg (the proxy for poverty) from the regression produces an upward biased estimator of. [ignoring the presence of log(enroll) in the model]. So when we control for the poverty rate, the effect of spending falls. of about 2. 17, which is significant at the 5% level against a two-sided alternative. The (iii) once we control for lnchprg, the coefficient on log(enroll) becomes negative and has a t. Therefore, a (iv) both math10 and lnchprg are percentages.
