1. The data file CollegeDistance.csv 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 students 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 CollegeDistanceDescription.pdf.

(e) Add the interaction term DadColl MomColl to the regression in (c).

What does the coefficient on the interaction term measure?

(f) Mary, Jane, Alexis, and Bonnie have the same values of Dist, Bytest, Tuition, Female, Black, Hispanic, Incomehi, Ownhome, Cue80, and Stwmfg80. Neither of Mary's parents attended college. Jane's father attended college, but her mother did not. Alexis's mother attended college, but her father did not. Both of Bonnie's parents attended college. Using the regressions from (e), i. What does the regression predict for the difference between Jane's and Mary's years of education? ii. What does the regression predict for the difference between Alexis's and Mary's years of education? iii. What does the regression predict for the difference between Bonnie's and Mary's years of education?

(g) Is there any evidence that the effect of Dist on ED depends on the family's income? (h) After running all these regressions, summarize the effect of Dist on years of education.