Does more money help schools? To answer this question, Ruben Hernandez-Murillo and Deborah Roisman present the data given in Table 7-9 on the textbook's Web site.
These data relate to several input and outcome variables for school districts in the St. Louis area and are for the academic year 1999 to 2000.
a. Treating the Missouri Assessment Program (MAP) test score as the dependent variable, develop a suitable model to explain the behavior of MAP.
b. Which variable(s) is crucial in determining MAP-economic or social?
c. What is the rationale for the dummy variable?
d. Would it be prudent to conclude from your analysis that spending per pupil and or smaller student/teacher ratio are unimportant determinants of test scores?