Question

In: Economics

A statistically significant coefficient of 2 on average class size, K-3 implies: a)That raising class size...

A statistically significant coefficient of 2 on average class size, K-3 implies:

a)That raising class size by 2 is associated with a 1 point increase in test scores

b)That raising class size by 1 is associated with a 2 point increase in test scores

c)That raising class size by 2 is associated with a 1 point decrease in test scores

d)That raising class size by 1 is associated with a 2 point decrease in test scores

Solutions

Expert Solution

Option b

Here, test score is a dependent variable and class size is an independent variable. As, the coefficient of class size is positive 2, it indicates that for every one unit increase in class size, the test score increases by 2 units.


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