In this exercise, you will use these data to investigate the relationship between the number of completed years of education for young adults and the distance from each student's high school to the nearest four-year college. (Proximity lowers the cost of education, so that students who live closer to a four-year college should, on average, complete more years of higher education.) The following table contains data from a random sample of high school seniors interviewed in 1980 and re-interviewed in 1986. Download the data from the table by clicking the download table icon . A detailed description of the variables used in the dataset is available here i . Use a statistical package of your choice to answer the following questions. Suppose you are interested in estimating the following model ED = Po + B, Dist + u Run a regression of years of completed education (ED) on distance to the nearest college (Dist), where Dist is measured in tens of miles. (For example, Dist = 2 means that the distance is 20 miles). What is the estimated intercept Po? The estimated intercept Bo is (Round your response to three decimal places) What is the estimated slope , ? The estimated slope B, is (Round your response to three decimal places) Is the estimated intercept o meaningful in this case? O A. Yes. O'B. NO. How does the average value of years of completed schooling change when colleges are built close to where students go to high school? A. The regression predicts that if colleges are built 10 miles closer to where students go to high school, average years of college will increase by 0.133 years. O'B. The regression predicts that if colleges are built 10 miles closer to where students go to high school, average years of college will increase by 14.040 years. C. The regression predicts that if colleges are built 10 miles closer to where students go to high school, average years of college will decrease by 14.040 years. O D. The regression predicts that if colleges are built 10 miles closer to where students go to high school, average years of college will decrease by 0.133 years. Bob's high school was 35 miles from the nearest college. Predict Bob's years of completed education using the estimated regression. Bob's predicted years of education completed is (Round your response to two decimal places) John's high school was 38 miles from the nearest college. Predict John's years of completed education using the estimated regression. John's predicted years of education completed i (Round your response to two decimal places) Compute the R for the regression above. The R for the regression above is (Round your response to four decimal places) Does distance to college explain a large fraction of the variance in educational attaintment across individuals? O A. Yes. O'B. No. Compute the value of the standard error of the regression and specify its units. The standard error of the regression (SER) isA B C D E 1 College Distance 0.4 12 Dist Ed 0.4 16 W N I 16 1.5 12 12 0.5 14 0.6 13 1.5 13 1.5 16 3.6 12 0.5 16 5 12 2.5 17 0.5 12 5 16 0.5 12 10 0.7 13 5 12 11 3 15 6.5 12 12 0.3 16 7 16 13 1 16 2.7 12 14 0.3 13 0.1 12 15 1 16 2.6 13 16 0.2 17 2 12 17 3 14 1 12 18 1.5 16 0.3 12 19 1 12 0.1 13 20 2 16 1.9 14 21 0.2 16 1.5 16 22 6.5 12 2 13 23 0.3 13 2.2 12 24 0 12 0.8 13 25 1.2 16 5 16 26 2.7 15 12 16 27 0 15 0.5 17 28 6 15 1.5 12 29 0.2 16 0.4 17 30 2 12 4 16 31 0.5 12 2.2 16 32 7 12 1.5 15 33 0.5 16 1.2 12 34 0.2 12 0.8 13 35 5 12 1 12 36 2 14 1.5 16 37 0.5 15 0.8 12 38 1 18 0.1 17 39 2.5 14 2 12 40 0.2 16 0.8 12 41 0.1 13 2.3 12 42 3.6 12 0.4 16 43 6 17 0.5 12 44 0.4 12 1.5 12 45 5 16 1.5 12 46 4.5 12 6 16 47 4 12 7 12 48 4.5 12 0.3 16 49 2.5 12 7.5 13 50 3 16 0.2 12 51 0.5 14 0.5 12 52
