Question: We used the data in MEAP93.RAW for Example 2.12. Now we want to explore the relationship between the math pass rate (mathI0) and spending per student (expend).

1. Do you think each additional dollar spent has the same effect on the pass rate, or does a diminishing effect seem more appropriate? Explain.
2. In the population model
   \[\operatorname{math} 10=\beta_{0}+\beta_{1} \log (\text { expend })+u\]
   argue that \(\beta_{1} / 10\) is the percentage point change in math10 given a 10 percent increase in expend.
3. Use the data in MEAP93.RAW to estimate the model from part (ii). Report the estimated equation in the usual way, including the sample size and \(R\) -squared.
4. How big is the estimated spending effect? Namely, if spending increases by 10 percent, what is the estimated percentage point increase in math10?

Price: $2.99

Solution: The downloadable solution consists of 2 pages
Deliverable: Word Document