The SAS System The REG Procedure Model: MODEL1 Dependent Variable: totsat Number
ID: 3229706 • Letter: T
Question
The SAS System
The REG Procedure
Model: MODEL1
Dependent Variable: totsat
Number of Observations Read
51
Number of Observations Used
51
Analysis of Variance
Source
DF
Sum of
Squares
Mean
Square
F Value
Pr > F
Model
1
41712
41712
5.18
0.0272
Error
49
394455
8050.10685
Corrected Total
50
436167
Root MSE
89.72239
R-Square
0.0956
Dependent Mean
1070.05882
Adj R-Sq
0.0772
Coeff Var
8.38481
Parameter Estimates
Variable
Label
DF
Parameter
Estimate
Standard
Error
t Value
Pr > |t|
Intercept
Intercept
1
1175.62307
48.04726
24.47
<.0001
texppp
texppp
1
-0.00953
0.00419
-2.28
0.0272
Present results for model 1 in equation form, (should include standard error or (t stats), R^2 and adj R2 when you present your results for ALL models)
Using run MODE 1; a bivariate regression to measure the effect of total expenditure per pupil (TEXPPP) on SAT scores, explain if expenditure pays a roll for pupils
Provide informal evidence to support the statistical significance of the independent variable
If education spending per pupil where to increase by 1000 what is the predicted effect on TOTSAT?
Think of model 1 as being subject to an omitted variable bias.
What is the correlation between PERTAKE and EXPPP?
What is the likely sign of the bias to coefficient estimate on TEXPPP in model 1)
The SAS System
Explanation / Answer
Model is
SAT = 1175.6231 - 0.0095 texppp , R2=9.56% , Adj. R2=7.72%
(SE) (48.0473) (0.0042)
(t) (24.47) (-2.28)
(p-value) (<0.0001) (0.0272)
At 5% level of significance, texppp is a significant predictor of SAT, t=-2.28, p=0.0272<0.05. Corresponding to unit increase in total expenditure per pupil there is on an average 0.0095 decrease in SAT score.
If expenditure increases by 1000, then on an average TOTSAT increase by 9.5
Let the correlation between PERTAKE and EXPPP is negative.
Thenn likely sign of bias will be upward as both predicotrs correlation and coefficient of totexpp are negative
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