Data on law and business schools were sampled from U.S. News & World Report's 1996 report on the "America's Best Graduate Schools 1996 Annual Guide." The school's reputation rank among academics and the 1995 median starting salary for graduates are shown in the accompanying table for 12 randomly sampled law schools and 12 randomly sampled business schools.

Question continues to the next page…

a. Suppose that an ANOVA is to be performed to compare the average 1995 starting salaries (SAL) for business and law schools (let the variable SCHOOL = Law or Business, depending on the type of school). State precisely the ANOVA model. Is SCHOOL a fixed- or random-effects factor?
b. In the above SAS output, complete the ANOVA table.
c. Test whether the average 1995 starting salaries differ significantly for graduates of law schools and of business schools.
d. Suppose that an ANOVA is to be performed to compare the average 1995 starting salaries (SAL) for the top 25 schools and schools not in the top 25 in terms of reputation rank (let the variable REP = 1 if a school's reputation rank is 25 or less, REP = 2 if the rank is 26 or more). State precisely the ANOVA model.
e. In the second part of the above SAS output, complete the ANOVA table.
f. Test whether the average 1995 starting salaries differ significantly between top 25 schools and schools not in the top 25 in terms of reputation rank.