2. Consider a model of financial aid awards at a liberal arts college. The below regression output from Excel and estimated equation are provided for the following questions. Regression Statistics Multiple R 0.866933295 R Square 0.751573339 Adjusted R Square 0.72997102 Standard Error 0.866419461 Observations 121 ANOVA df Significance F 2.24741E-13 Regression Residual Total 2 118 120 SS MS F 104.4689888 26.1172472 34.79132774 34.53140335 0.750682682 139.0003922 Intercept Parent HSRank Coefficients 8,927 -0.36 87.4 Standard Error 204.8 0.03 20.7 t Stat P-value 43.59 2.25746E-32 - 11.26 1.32E-18 4.22 0.047485418 FINAID; = 8927 0.36 PARENT; + 87.4 HSRANK ; where: FINAID; = the financial aid (measured in dollars of grant) awarded to the ith applicant PARENT= the amount (in dollars) that the parents of the ith student are judged able to contribute to college expenses HSRANK = the ith student's GPA rank in high school, measured as a percentage (ranging from a low of 0 to a high of 100) 2-a. Interpret each coefficient estimated. [3 points) 2-b. Referring to the regression output provided above, carefully discuss any evidence of an omitted variable and/or an irrelevant variable in the economic model. [4 points) 2-c. Given the evidence of an omitted variable and/or an irrelevant variable in the economic model, what assumption(s) on Classical Model is (are) violated? [3 points)