Can't use excel at all
QUESTION 3: (15 POINTS) It is well known that ranking of law schools in the US influences starting salary of students. Suppose you want to estimate the effect of ranking on median starting salary. The below output reports the results of a simple OLS regression analysis. In this model, the variable school rank has been divided into four dummy variables (with a fifth variable held out of the model as a reference category): (1) top10: i.e., whether the school is ranked in the top 10 (1 yes, 0-no), (2) r1 1-25: i.e., ranked in the top 11-25 (1- yes, 0-no), (3)r26-40: i.e., ranked in the top 26-40 (1-yes, 0-no) and 4) r41-60: i.e., ranked in the top 41-60 (1-yes, 0-no). The base/reference category in the regression model is >60 for schools above the 60th rank (1-yes, 0-no). Also, given that median salary is almost always positively skewed (right skewed), the dependent variable above is measured as the natural log of starting median salary (Isalary). a. What percent of the total variation in starting median salary can be attributed to the model in Exhibit 5 (not adjusting for additional variables)? (2 pts) b. What percent of the total variation in starting median salary can be attributed to the model in Exhibit 5 (adjusting for additional variables)? (2 pts) c. Holy would you interpret the F-stat in this model? (2pts) d. Interpret the coefficient for "ril_25" in your model. Remember to interpret the dependent variable as a log dependent variable. (3 pts) e. Interpret the coefficient for "top ten" in your model. Remember to interpret the dependent variable as a log dependent variable. (3 pts) f. Based on your interpretation, does the coefficient for "top ten" seem practically significant? (3 pts.) | Exhibit 5 reg Isalary top10 ril 25 226 40 r41 60 Source de NS Number of obs = 148 P . 143) - 222.10 Model 9. 69572381 2. 42393095 Prob > F D. DODO Residual 1. 56068434 143 010913876 R-squared D. B614 Adj R-squared = 0. 8575 Total 11. 2564081 147 076574205 Root MSE -1D447 Isalary Cont. Std. Err. P>ItI [95\\ Conf. Interval] top10 .7567631 034767 21.77 0.000 6880395 254867 Ell 25 . 603897 .0282749 21. 36 0.000 . 5480062 .6597839 126 40 . 3659125 - 0320444 11.42 0.000 . 3025706 - 4292544 141 60 .2447043 . 0275562 8.88 0. 000 - 1902341 - 2991745 cons 10 .35458 . 010833 955.84 0 -000 10.33317 10.37599