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Using the uploaded Excel file and any statistical software of your choosing, answer the following questions. The file gives data on average public teacher pay (annual salary in dollars) and spending on public schools per pupil (dollars) in 1985 for 50 states and the District of Columbia. Submit the output.
1. Generate the regression output for the regression: 〖 〖Pay〗_i=β〗_0 〖+ β〗_1 〖Spend〗_i+u_i [1]
2. Interpret the estimated slope coefficient. [1]
3. Establish a 95% confidence interval for 〖 β〗_1. Will you reject the null hypothesis that the true slope coefficient is 3? [1]
4. Conduct a hypothesis test that the slope of the variable Spend is zero using α=0.01. You must write out a) the null and alternate hypothesis and b) the conclusion you’ve arrived at. [2]
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