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Lecture Slides: Powerpoint PDF
Learning Objectives
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Test a hypothesis about a regression coefficient
- Form a confidence interval around a regression coefficient
- Show how the central limit theorem allows econometricians to ignore assumption CR4 in large samples
- Present results from a regression model
Examples
- Central Limit Theorem in Action
- CA Schools
What We Learned
- We reject the null hypothesis of zero relationship between free lunch eligibility (FLE) and academic performance.
- Our result is the same whether we drop CR4 and invoke the central limit theorem (valid in large samples) or whether we impose CR4 (necessary in small samples).
- Confidence intervals are narrow when the sum of squared errors is small, the sample is large, or there’s a lot of variation in X.
- How to present results from a regression model.