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You have obtained data on test scores and student-teacher ratios in region A and region B of your ...

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You have obtained data on test scores and student-teacher ratios in region A and region B of your ...

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?

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rvalen98 Author

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You make an excellent tutor!

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I appreciate what you did here, answered it right Smiling Face with Open Mouth

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