You have obtained data on test scores and student-teacher ratios in region A and region B. Region B, on average, has lower student-teacher ratios than region A. You decide to run the following regression Yi=B0+B1X1i+B1X2i+B3X3i+u 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?
Correlation
Correlation defines a relationship between two independent variables. It tells the degree to which variables move in relation to each other. When two sets of data are related to each other, there is a correlation between them.
Linear Correlation
A correlation is used to determine the relationships between numerical and categorical variables. In other words, it is an indicator of how things are connected to one another. The correlation analysis is the study of how variables are related.
Regression Analysis
Regression analysis is a statistical method in which it estimates the relationship between a dependent variable and one or more independent variable. In simple terms dependent variable is called as outcome variable and independent variable is called as predictors. Regression analysis is one of the methods to find the trends in data. The independent variable used in Regression analysis is named Predictor variable. It offers data of an associated dependent variable regarding a particular outcome.
You have obtained data on test scores and student-teacher ratios in region A and region B. Region B, on average, has lower student-teacher ratios than region A. You decide to run the following regression
Yi=B0+B1X1i+B1X2i+B3X3i+u
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?
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