The data file CollegeDistance contains data from a random sample of high school seniors interviewed in 1980 and re-interviewed in 1986. 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 to college 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.) A detailed description is given in College Distance_Description, below the question set. (a) Run a regression of years of completed education (ED) on distance to the nearest college (Dist). Dist is measured in tens of miles, for example, dist=2 means that the distance is 20 miles. What is the estimated slope? (b) Run a regression of Ed on Dist, but include some additional regressors to control for characteristics of the student, the student's family, and the local labor market. In particular, include as additional regressors Bytest, Female, Black, Hispanic, Incomehi, Ownhome, DadColl, Cue80, and Stwmfg80. What is the estimated effect of Dist on ED? (c) Is the estimated effect of Dist on ED in the regression in (b) substantively different from the regression in (a)? Based on this, does the regression in (a) seem to suffer from important omitted variable bias? (d) Compare the fit of the regression in (a) and (b) using the regression standard errors, R and . Why are the R and R so similar in regression (b)? (e) The value of the coefficient on DadColl is positive. What does this coefficient measure? (f) Explain why Cue80 and Swmfg80 appear in the regression. Are the signs of their estimated coefficients (+ or -) what you would have believed? Interpret the magnitudes of these coefficients. (g) Bob is a black male. His high school was 20 miles from the nearest college. His baseyear composite test score (Bytest) was 58. His family income in 1980 was $26,000, and his family owned a home. His mother attended college, but his father did not. The unemployment rate in his county was 7.5%, and the state average manufacturing hourly wage was $9.75. Predict Bob's years of completed schooling using the regression in (b). (h) Jim has the same characteristics as Bob except that his high school was 40 miles from the nearest college. Predict Jim's years of completed schooling using the regression in (b)