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A vendor of a software product claims that their new program/app called Algebra without Tears greatly enhances the understanding of key mathematical...

A vendor of a software product claims that their new program/app called Algebra without Tears greatly enhances the understanding of key mathematical concepts among school students. They approached the Anne Arundel County School District with the suggestion that the program be adopted in county schools and integrated into the curriculum. While the program—which runs on PC/Mac/iPad—has a very nice user interface, it is expensive. There is a $100,000 purchase fee, and an annual maintenance license cost of $12,000. The county wants to know what the effect of adopting this program will be on student outcomes. They are aware that some students are already using the program (on personal licenses) and collect data from three schools. The data is described in the following table: 

The categorical variable School, is recoded using two dummy variables (School_A = 1 if School = A, and 0 otherwise; School_B = 1 if School = B, and 0 otherwise). The regression output is given below. 

(a)  The p-value for the School_A indicates(please choose the most appropriate answer)

§  That School A provides good math education

§  That School A is a useful predictor

§  That School A is statistically different from School B

§  That School A is not useful explaining Score, given the other variables in the model

(b)  Provide an interpretation of the coefficient of Income 

(c)  Should the school district adopt Algebra without Tearsand integrate it into the curriculum? Explain. 

(d)  What would you expect the math score to be of a child who is 7 years old, used the software in class, goes to school A, and has a family income of $100 thousand?  

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