true or false. Explain A researcher is interested in whether per-pupil spending on education improves student test scores, but she is worried about omitted-variable bias. She decides to use median income within a school district as an instrument for education spending because wealthier areas tend to invest more in education. She runs a regression of per-pupil education spending on median income in the district and finds that the t-statistic on the slope coefficient is 8. We can, therefore, conclude that median income is a good instrument for education spending.
Correlation
Correlation defines a relationship between two independent variables. It tells the degree to which variables move in relation to each other. When two sets of data are related to each other, there is a correlation between them.
Linear Correlation
A correlation is used to determine the relationships between numerical and categorical variables. In other words, it is an indicator of how things are connected to one another. The correlation analysis is the study of how variables are related.
Regression Analysis
Regression analysis is a statistical method in which it estimates the relationship between a dependent variable and one or more independent variable. In simple terms dependent variable is called as outcome variable and independent variable is called as predictors. Regression analysis is one of the methods to find the trends in data. The independent variable used in Regression analysis is named Predictor variable. It offers data of an associated dependent variable regarding a particular outcome.
true or false. Explain
A researcher is interested in whether per-pupil spending on education improves student test scores, but she is worried about omitted-variable bias. She decides to use median income within a school district as an instrument for education spending because wealthier areas tend to invest more in education. She runs a regression of per-pupil education spending on median income in the district and finds that the t-statistic on the slope coefficient is 8. We can, therefore, conclude that median income is a good instrument for education spending.
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