Essay
You have obtained data on test scores and student-teacher ratios in region A and region B
of your state.Region B, on average, has lower student-teacher ratios than region A.You
decide to run the following regression where X1 is the class size in region A, X2 is the difference in class size between region A
and B, and X3 is the class size in region B.Your regression package shows a message
indicating that it cannot estimate the above equation.What is the problem here and how
can it be fixed?
Correct Answer:

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There is perfect multicollinearity prese...View Answer
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Correct Answer:
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