Using data on class size (CS) and average test percentage (TP) from classes, the following OLS regression is estimated: . R-squared is and SER (standard error of regression) is . What is the sample variance of test percentages across the classes?
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Using data on class size (CS) and average test percentage (TP) from 101 classes, the following OLS regression is estimated: T̂P̂=96.4-1.12 CS. R-squared is 0.1 and SER (standard error of regression) is 5. What is the sample variance of test percentages across the 101 classes? (A) 27.5 (B) 22.5 (C) 5.0 (D) 2.5
Also written as: Using data on class size (CS) and average test percentage (TP) from 101 classes, the following OLS regression is estimated: TP_hat=96.4-1.12 CS. R-squared is 0.1 and SER (standard error of regression) is 5. What is the sample variance of test percentages across the 101 classes?
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This question is on Sums of squares and variance decomposition, part of Goodness of fit and model selection in Econometrics.
Splitting total variation into explained and unexplained parts.
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Question from the DSE 2016 paper. Solutions are TestStop's own. Not affiliated with or endorsed by any examination authority.