Question 4 [7.5 marks] Please include EViews outputs in your answers. U.S. News publishes ranking of the top 20 U.S. Graduate Business Schools on the follow- ing website https://www.usnews.com/best-colleges/rankingsational-universities. Reading this website will NOT at all help you to answer this questions. The overall ranking is based on ranking obtained from students and from firms that recruit Master of Business Adminis- tration (MBA). Along with the ranking, the magazine reports information about the cost of getting an MBA degree and the graduates' average starting salaries. BEST Best National University Rankings TUITION AND FEES COLLEGES Princeton University $56,010 UNDERGRADUATE ENROLLMENT #1 in National Universities 4,773 (fell 2020) US.News * * * * * 21 reviews BAT, OFA AND MORE vy-covered cam A Unlock with Compass the quiet town of Prinorion New Jersey. Princeton was the first university to offer a RANKINGS READ MORE . Add To Compare Save to My Schools Harvard University TUITION AND FEES $55.587 bridge, MA UNDERGRADUATE ENROLLMENT $2 in National Universities (tie) 5.222 (fell 2080) * * * * * 19 reviews BAT, SPA AND MORE Harvard University is a private institution in Cam a Unlock with Compass of Boston. This lv READ MORE . Add To Compare Save to My Schools The EViews workfile mba. wf1 contains data on the overall cost (in dollars, $) of getting an MBA and the average entry annual salaries (in dollars, $) for graduates of the top 20 schools in that year. (a) Using EViews, draw a scatter diagram of salary (y-axis) versus cost (x-axis). What do you see? [1 mark] (b) Using EViews, calculate the coefficient of correlation between cost and salary. What does this statistic tell you? [1 mark](c) We are interested in answering the question \"is there a payoff from spending more?". Estimate the sample regression line and write down the sample regression line. What Tvalue is the estimated slope? What do you conclude based on the value of the estimated slope alone? [2 marks] ((1) Do you think you need to be careful when interpreting the result from part (c)? (Hint: what does the scatter diagram from part (a) suggest to you?) [1 mark] (e) Predict the salary of a graduate if the cost is $60,000. Do you think the regression gives reliable predictions for a graduate whose overall cost of getting an MBA is $60,000? Explain. [1.5 marks] (f) What proportion of the variation in salary that is explained by cost? [0.5 marks] (g) Calculate the residual for the rst observation. [0.5 marks]