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rvalen98 rvalen98
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6 years ago
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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PaulinaPaulina
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6 years ago
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rvalen98 Author
wrote...

6 years ago
Thanks for your help!!
wrote...

Yesterday
Smart ... Thanks!
wrote...

2 hours ago
Good timing, thanks!
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