Essay
Using the California School data set from your textbook, you decide to run a regression of the average reading score (ScrRead)on the average mathematics score (ScrMaths). The result is as follows, where the numbers in parenthesis are homoskedasticity only standard errors: = 8.47 + 0.9895×ScrMaths
(13.20)(0.0202)
N = 420, R2 = 0.85, SER = 7.8
You believe that the average mathematics score is an unbiased predictor of the average reading score. Consider the above regression to be the unrestricted from which you would calculate SSRUnrestricted . How would you find the SSRRestricted? How many restrictions would have to impose?
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