In this chapter we spent a lot of time with Guber’s study of educational expenditures and found that when we controlled for the percentage of students taking the SAT exam, Expend was not a significant predictor. However, the SAT is not a good dependent variable in discussing the quality of education in a state. Perhaps the ACT, which tests something somewhat different, is a better predictor. Use the data set, which is available on the book’s Web site and nam.dat, to answer that question. Be complete in your answer, examining the individual variables and the residuals.
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