[C1, P1] The cost of attending your college has once again gone up. Although you have been told that education is investment in human capital, which carries a return of roughly 10% a year, you (and your parents) are not pleased. One of the administrators at your university/college does not make the situation better by telling you that you pay more because the reputation of your institution is better than that of others. To investigate this hypothesis, you collect data randomly for 100 national universities and liberal arts colleges from the 2020-2021 U.S. News and World Report annual rankings. Next you perform the following regression

= 7,311.17 + 3,985.20 Reputation - 0.20 Size

+ 8,406.79 Dpriv - 416.38 Dlibart - 2,376.51 Dreligion

R2 = 0.72, SER = 3,773.35

where Cost is Tuition, Fees, Room and Board in dollars, Reputation is the index used in U.S. News and World Report (based on a survey of university presidents and chief academic officers), which ranges from 1 ("marginal") to 5 ("distinguished"), Size is the number of undergraduate students, and Dpriv, Dlibart, and Dreligion are binary variables indicating whether the institution is private, a liberal arts college, and has a religious affiliation.

2) [C1, P1] Females, it is said, make 70 cents to the dollar in the United States. To investigate this phenomenon, you collect data on weekly earnings from 1,744 individuals, 850 females and 894 males. Next, you calculate their average weekly earnings and find that the females in your sample earned $346.98, while the males made $517.70.

(b) A peer suggests that this is consistent with the idea that there is discrimination against females in the labor market. What is your response?