D Question 10 4.5 pts Using the textbook example of 420 school districts and the

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D Question 10 4.5 pts Using the textbook example of 420 school districts and the regression of test scores on the student teacher ratio, you find that the standard error on the slope coefficient is 0.51 whern using the heteroskedasticity-robust formula, while it is 0.48 when employing the homoskedasticity-only formula. Whern calculating the t-statistic, the recommended procedure is to: O first test for homoskedasticity of the errors and then make a decision homoskedasticity-only formula because the t-statictic becomes larger O make a decision based on how much different the estimate of the slope is under the two procedures O O use the heteroskedasticity-robust formula

Explanation / Answer

Your correct option is (D) use the heteroskedasticity robust formula.

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