You can read more about this study here for background information https://schol

Question

You can read more about this study here for background information

https://scholar.harvard.edu/files/kremer/files/textbooks_and_test_scores_aej_jan_2010_sunday.pdf

TABLE 8 NORMALIZED TEST SCORES AS A FUNCTION OF TREATMENT AND PRETEST SCORE Normalized test score Normalized test score Normalized test score minus (year Dependent variable (year 2) pretest scores (year 1) Textbook school 0.060 0.016 0.021 (0.061) (0.088) 0.060 0.342*** Pretest score 0.430*** 0.338*** (0.013) (0.016) (0.016) Pretest X textbook school 0.057*** 0.061*** 0.042** (0.018) (0.022) (0.021) Observations 11,342 7,393 11,321 Notes: The first two columns are regressions of October/November test scores for the relevant year on dummy variables for textbook school, sex, and region, the average of the three year l pretest scores, and an interaction term between the textbook school dummy and the average pretest score. The dependent variable in the third col- umn is the OctoberNovember test score minus pretest score. Each regression includes all children enrolled in January of year 1 who took the January pretest and the relevant October/November test. Significant at the 1 percent level. Significant at the 5 percent level. Significant at the 10 percent level. 1. In table 8, the authors report the estimated coefficient of"Pretestxtextbook school Explain the hypothesis that they are testing with this variable. 2. Is the estimated coefficient of "Pretestxtextbook school statistically significantly different from zero? Justity your answer

Explanation / Answer

Part-1

Using the interaction term Pretest X textbook school, the author wants to test whether the effect of pretest scores on the normalized test scores in year 1, year 2 vary by the textbook used in the school.

Part-2

In all the three regression models the coefficient of integration term is significant as three asterisk (“*”) are put on coefficient of interaction term which means p-value<0.01

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