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The median starting salary for new law school graduates is determined by: log(salary) = Bo+B,LSAT+B,GPA+Bzlog(libvol)+ß,log(cost)+ßgrank+u where LSATİS the median LSAT score for graduating class (standardized test for prospective law students), GPA is the median college GPA for the class, libvol is the number of volumes in the law school library, cost is the annual cost of attending law school, and rank is a law school ranking (with rank =1 being the best). 1. Explain why we expect ß5<0? 2. What signs do you expect for the other slope parameters? Explain. 3. Using the data, the estimated question is: log(salary)= 8.34+0.0047LSAT+0.248GPA+0.095log(libvol)+0.038log(cost)-0.0033rank %3D What is the predicted ceteris paribus difference in salary for schools with a median GPA difference by one point? (Report your answer as a percentage) 4. Interpret the coefficient on the variable log(libvol) 5. Would you say it is better to attend a higher ranked law school? How much is a difference in ranking of 20 worth in terms of predicted starting

The median starting salary for new law school graduates is determined by: log(salary) = Bo+B,LSAT+B,GPA+Bzlog(libvol)+ß,log(cost)+ßgrank+u where LSATİS the median LSAT score for graduating class (standardized test for prospective law students), GPA is the median college GPA for the class, libvol is the number of volumes in the law school library, cost is the annual cost of attending law school, and rank is a law school ranking (with rank =1 being the best). 1. Explain why we expect ß5<0? 2. What signs do you expect for the other slope parameters? Explain. 3. Using the data, the estimated question is: log(salary)= 8.34+0.0047LSAT+0.248GPA+0.095log(libvol)+0.038log(cost)-0.0033rank %3D What is the predicted ceteris paribus difference in salary for schools with a median GPA difference by one point? (Report your answer as a percentage) 4. Interpret the coefficient on the variable log(libvol) 5. Would you say it is better to attend a higher ranked law school? How much is a difference in ranking of 20 worth in terms of predicted starting

MATLAB: An Introduction with Applications
MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
Section: Chapter Questions
Problem 1P
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The median starting salary for new law school graduates is determined by: log(salary) = B,+ß,LSAT+B,GPA+B3log(libvol)+B4log(cost)+ßgrank+u where LSATis the median LSAT score for graduating class (standardized test for prospective law students), GPA is the median college GPA for the class, libvol is the number of volumes in the law school library, cost is the annual cost of attending law school, and rank is a law school ranking (with rank =1 being the best). 1. Explain why we expect B5 <0? 2. What signs do you expect for the other slope parameters? Explain. 3. Using the data, the estimated question is: log (salary) = 8.34+0.0047LSAT+0.248GPA+0.095log(libvol)+0.038/og(cost)-0.0033rank What is the predicted ceteris paribus difference in salary for schools with a median GPA difference by one point? (Report your answer as a percentage) 4. Interpret the coefficient on the variable log(libvol) 5. Would you say it is better to attend a higher ranked law school? How much is a difference in ranking of 20 worth in terms of predicted starting salary?
Transcribed Image Text:The median starting salary for new law school graduates is determined by: log(salary) = B,+ß,LSAT+B,GPA+B3log(libvol)+B4log(cost)+ßgrank+u where LSATis the median LSAT score for graduating class (standardized test for prospective law students), GPA is the median college GPA for the class, libvol is the number of volumes in the law school library, cost is the annual cost of attending law school, and rank is a law school ranking (with rank =1 being the best). 1. Explain why we expect B5 <0? 2. What signs do you expect for the other slope parameters? Explain. 3. Using the data, the estimated question is: log (salary) = 8.34+0.0047LSAT+0.248GPA+0.095log(libvol)+0.038/og(cost)-0.0033rank What is the predicted ceteris paribus difference in salary for schools with a median GPA difference by one point? (Report your answer as a percentage) 4. Interpret the coefficient on the variable log(libvol) 5. Would you say it is better to attend a higher ranked law school? How much is a difference in ranking of 20 worth in terms of predicted starting salary?
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