In order to investigate the hypothesis that greater prestige
leads to higher costs of attendance at higher educational
institutions, a researcher randomly sampled national universities
and liberal arts colleges from the U.S. News and World
Reportrankings. Based on the data collected, they estimated a
model that sought to explain costs as a function of a number of
institutional characteristics, with the following results (standard
errors in parentheses):
Cost= 7,502 + 3,818Reputation– 0.21Size+
8,391Dpriv
(1,277) (0.13) (2,386)
R^2= .72 N = 92
whereCostis...