Lecture 8, ECON 123A, Fall 2011
Dale J. Poirier
8-1
Lecture 8
Simple Regression
2.1
Definition of the Simple Regression Model
Questions:
C
A state implements tough new penalties on drunk drivers. What is the
effect on highway fatalities?
C
A school district cuts the size of its elementary school classes. What is
the effect on its students’ standardized test scores?
C
You successfully complete one more year of college classes. What is the
effect on your future earnings?

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