Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

Can't use excel at all

image text in transcribed
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

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Fundamentals Of Complex Analysis With Applications To Engineering And Science

Authors: Edward B Saff, Arthur D Snider

3rd Edition

0321997506, 9780321997500

More Books

Students also viewed these Mathematics questions

Question

Summarise the different software development methodologies

Answered: 1 week ago