6. Theoretical equation: Si = Bo+ B1Y₁+ B ₂ G₁ + 5 i 0 Where: S = Educational birr spent per school student in the ith region in Ethiopia (in Birr Y = Per capita income in the įth region (in Birr) G=% growth of school enrollment in the ith region (in %) Estimated equation: Si= -183+ 0.1422Yi - 5926Gi a. Interpret the estimated regression coefficients b. In the estimated equation, why is the dependent variable S, and not S;? i c. Did I forget the stochastic error term in the estimated equation? d. Suppose that you had the opportunity to add another variable to the equation - what would happen to adjusted R²? e. What do you think would happen to the estimated coefficients of this equation if we had measured the per capita income variable in thousands of birr instead of in birr? Be specific.

Algebra & Trigonometry with Analytic Geometry
13th Edition
ISBN:9781133382119
Author:Swokowski
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Chapter7: Analytic Trigonometry
Section7.6: The Inverse Trigonometric Functions
Problem 91E
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Please, explain detail following formulats

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6. Theoretical equation: S₁ = 0 + B₁Y₁ + В 2 G₁ +
Where: S = Educational birr spent per school student in the ith region in Ethiopia (in Birr
Y = Per capita income in the ith region (in Birr)
G=% growth of school enrollment in the ith region (in %)
Estimated equation: Si = -183+ 0.1422Yi - 5926Gi
a. Interpret the estimated regression coefficients
b. In the estimated equation, why is the dependent variable Sį and not S;?
c. Did I forget the stochastic error term in the estimated equation?
d. Suppose that you had the opportunity to add another variable to the equation – what
would happen to adjusted R²?
e.
What do you think would happen to the estimated coefficients of this equation if we
had measured the per capita income variable in thousands of birr instead of in birr?
Be specific.
Transcribed Image Text:6. Theoretical equation: S₁ = 0 + B₁Y₁ + В 2 G₁ + Where: S = Educational birr spent per school student in the ith region in Ethiopia (in Birr Y = Per capita income in the ith region (in Birr) G=% growth of school enrollment in the ith region (in %) Estimated equation: Si = -183+ 0.1422Yi - 5926Gi a. Interpret the estimated regression coefficients b. In the estimated equation, why is the dependent variable Sį and not S;? c. Did I forget the stochastic error term in the estimated equation? d. Suppose that you had the opportunity to add another variable to the equation – what would happen to adjusted R²? e. What do you think would happen to the estimated coefficients of this equation if we had measured the per capita income variable in thousands of birr instead of in birr? Be specific.
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