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Tuition at your school has gone up, and administrators argue that the reason for the increase is that the reputation of the school has increased. You decide to investigate this hypothesis by collecting data randomly for 100 national universities and liberal arts colleges from the 2017-2018 U.S News and World Report annual rankings. You run the following regression: Cost = 7311.17 +3985.20 Rep - 0.20 Size + 8406.79 Dpriv- 416.38 Dlibart - 2376.51 Drel R2 = 0.72, SER = 3773.35 where Cost is the tuition in dollars, Rep is the index in the U.S. News and World Report that ranges from 1 to 5 with 5 being the bets reputation, Size is the number of undergraduate students, Dpriv is a binary variable equal to 1 if the school is private, Dlibart is a binary variable equal to 1 if the school is a liberal arts school, and Drel is a binary variable equal to 1 if the school has a religious affiliation. Type your numbers in two decimal places without thousands separators in the following questions. a) The forecasted cost for a private liberal arts college, which has no religious affiliation, a size of 1500 students, and a reputation level of 4.5 is $ b) If you switch from a private university to a public university that has a 0.5 lower reputation ranking and 10,000 more students, your tuition cost will decrease by $ c) If you eliminate Size, and just regress Cost on Rep, Dpriv, Dlibart, and Drel, you expect the coefficient on Dpriv will Hint: Choose a word between 'increase' and 'decrease.' . The reason is because Size is an omitted variable that is correlated with Dpriv and related to Cost. Hint: Choose a word between 'positively' and 'negatively. '

Tuition at your school has gone up, and administrators argue that the reason for the increase is that the reputation of the school has increased. You decide to investigate this hypothesis by collecting data randomly for 100 national universities and liberal arts colleges from the 2017-2018 U.S News and World Report annual rankings. You run the following regression: Cost = 7311.17 +3985.20 Rep - 0.20 Size + 8406.79 Dpriv- 416.38 Dlibart - 2376.51 Drel R2 = 0.72, SER = 3773.35 where Cost is the tuition in dollars, Rep is the index in the U.S. News and World Report that ranges from 1 to 5 with 5 being the bets reputation, Size is the number of undergraduate students, Dpriv is a binary variable equal to 1 if the school is private, Dlibart is a binary variable equal to 1 if the school is a liberal arts school, and Drel is a binary variable equal to 1 if the school has a religious affiliation. Type your numbers in two decimal places without thousands separators in the following questions. a) The forecasted cost for a private liberal arts college, which has no religious affiliation, a size of 1500 students, and a reputation level of 4.5 is $ b) If you switch from a private university to a public university that has a 0.5 lower reputation ranking and 10,000 more students, your tuition cost will decrease by $ c) If you eliminate Size, and just regress Cost on Rep, Dpriv, Dlibart, and Drel, you expect the coefficient on Dpriv will Hint: Choose a word between 'increase' and 'decrease.' . The reason is because Size is an omitted variable that is correlated with Dpriv and related to Cost. Hint: Choose a word between 'positively' and 'negatively. '

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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Tuition at your school has gone up, and administrators argue that the reason for the increase is that the reputation of the school has increased. You decide to investigate this hypothesis by collecting data randomly for 100 national universities and liberal arts colleges from the 2017-2018 U.S News and World Report annual rankings. You run the following regression: - 2376.51 * Drel Cost = 7311.17 +3985.20 Rep - 0.20 Size +8406.79 * Dpriv - 416.38 * Dlibart R2 = 0.72, SER = 3773.35 where Cost is the tuition in dollars, Rep is the index in the U.S. News and World Report that ranges from 1 to 5 with 5 being the bets reputation, Size is the number of undergraduate students, Dpriv is a binary variable equal to 1 if the school is private, Dlibart is a binary variable equal to 1 if the school is a liberal arts school, and Drel is a binary variable equal to 1 if the school has a religious affiliation. * Type your numbers in two decimal places without thousands separators in the following questions. a) The forecasted cost for a private liberal arts college, which has no religious affiliation, a size of 1500 students, and a reputation level of 4.5 is $ b) If you switch from a private university to a public university that has a 0.5 lower reputation ranking and 10,000 more students, your tuition cost will decrease by $ c) If you eliminate Size, and just regress Cost on Rep, Dpriv, Dlibart, and Drel, you expect the coefficient on Dpriv will Hint: Choose a word between 'increase' and 'decrease.' The reason is because Size is an omitted variable that is correlated with Dpriv and related to Cost. Hint: Choose a word between 'positively' and 'negatively. '
Transcribed Image Text:Tuition at your school has gone up, and administrators argue that the reason for the increase is that the reputation of the school has increased. You decide to investigate this hypothesis by collecting data randomly for 100 national universities and liberal arts colleges from the 2017-2018 U.S News and World Report annual rankings. You run the following regression: - 2376.51 * Drel Cost = 7311.17 +3985.20 Rep - 0.20 Size +8406.79 * Dpriv - 416.38 * Dlibart R2 = 0.72, SER = 3773.35 where Cost is the tuition in dollars, Rep is the index in the U.S. News and World Report that ranges from 1 to 5 with 5 being the bets reputation, Size is the number of undergraduate students, Dpriv is a binary variable equal to 1 if the school is private, Dlibart is a binary variable equal to 1 if the school is a liberal arts school, and Drel is a binary variable equal to 1 if the school has a religious affiliation. * Type your numbers in two decimal places without thousands separators in the following questions. a) The forecasted cost for a private liberal arts college, which has no religious affiliation, a size of 1500 students, and a reputation level of 4.5 is $ b) If you switch from a private university to a public university that has a 0.5 lower reputation ranking and 10,000 more students, your tuition cost will decrease by $ c) If you eliminate Size, and just regress Cost on Rep, Dpriv, Dlibart, and Drel, you expect the coefficient on Dpriv will Hint: Choose a word between 'increase' and 'decrease.' The reason is because Size is an omitted variable that is correlated with Dpriv and related to Cost. Hint: Choose a word between 'positively' and 'negatively. '
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