This is a computer-based questions that requires the use of Stata.

The data file HW2 contains data from a random sample of high school seniors interviewed in 1980 and re-interviewed in 1986. Your goal is 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 under FILES> Homework > HW2.

a) 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? What is the estimated slope? Interpret in words these estimates.

b) How does the average value of years of completed schooling change when colleges are built close to where students go to high school?

c) John's high school was 20 miles from the nearest college. Predict John's years of completed education. How would the prediction change if John lived 10 miles from the nearest college? Show all the steps.

d) Does distance to college explain a large fraction of the variance in educational attainment across individuals? Explain.

e) Is the estimated regression slope coefficient statistically significant? Conduct your test at 10%, 5%, and 1% significance level? What is the p-value associated with coefficient's t-statistic?

f) Construct a 95% confidence interval for the slope coefficient.

g) Run the regression using data only on females and repeat (b).

h) Run the regression using data only on males and repeat (b).

i) Is the effect of distance on completed years of education different for men than for women?

. regress ed dist, robust Linear regression Number of obs = 3,796 F (1, 3794) 29.83 Prob > F = 0.0000 R-squared 0. 0074 Root MSE 1.8074 Robust ed Coef. Std. Err. t P>|t| [95% Conf. Interval] dist -.0733727 . 0134334 -5.46 0.000 - . 0997101 - .0470353 cons 13.95586 .0378112 369.09 0.000 13.88172 14.02999Series in Data Set: Name Desreiption ed Years of Education Completed (See below) female 1 = Female/0 = Male black 1 = Black/0 = Not-Black Hispanic 1 = Hispanic/0 = Not-Hispanic bytest Base Year Composite Test Score. (These are achievement tests given to high school seniors in the sample) dadcoll 1 = Father is a College Graduate/ 0 = Father is not a College Graduate momcoll 1 = Mother is a College Graduate/ 0 = Mother is not a College Graduate incomehi 1 = Family Income > $25,000 per year/ 0 = Income