Empirical Exercises for Chapter 6 In this exercise you will investigate the relationship between the number of completed years of education for young adults and the distance from their high school to the nearest four-year college. On the Web site you will find the data file CollegeDistance (in Excel and Stata formats). This file contains information on a random sample of high school seniors in 1980. These same students were interviewed again in 1986 to determine how many years of education they had completed. A detailed description is given in CollegeDistance_DataDescription, available on the Web site. Use these data to answer the following questions. 1. Run a regression of ED on Dist, Tuition, Black, Hispanic, Incomehi, Ownhome, DadColl, MomColl, Cue80 and Stwmfg80. If Dist increases from 2 to 3 (that is, 20 to 30 miles), how are years of education expected to change? If Dist increases from 6 to 7 (that is, 60 to 70 miles), how are years of education expected to change? 2. Run a regression of In(ED) on Dist, Tuition, Black, Hispanic, Incomehi, Ownhome, DadColl, MomColl, Cue80 and Stwmfg80. If Dist increases from 2 to 3 (that is, 20 to 30 miles), how are years of education expected to change? If Dist increases from 6 to 7 (that is, 60 to 70 miles), how are years of education expected to change? 3. Run a regression of ED on Dist, Dist, Tuition, Black, Hispanic, Incomehi, Ownhome, DadColl, MomColl, Cue80 and Stwmfg80. If Dist increases from 2 to 3 (that is, 20 to 30 miles), how are years of education expected to change? If Dist increases from 6 to 7 (that is, 60 to 70 miles), how are years of education expected to change? 4. Do you prefer the regression in (3) to the regression in (1)? Explain