A sociologist studies the relationship between a district's average score on a standardized test for 10th grade students (y),the average school expenditures per student (x1in $1,000s),and an index of socioeconomic status of the district (x2).The results of the regression are = 10.16 + 8.50x1 + 4.30x2;n = 25;SSE = 450;
He would like to determine whether the influence of expenditures on test scores differs from the influence of the index on test scores,or β1 ≠ β2.The results of the restricted model for this test are = 12.25 + 6.05(x1 + x2);n = 25;SSE = 600.
a.Formulate the hypotheses to determine whether Expenditures and Index Rate have the same influence on Scores.
b.Calculate the value of the test statistic.
c.At the 5% significance level,find the critical value(s).
d.What is the conclusion to the test?
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