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APPLICATIONi = 523.3 + 2.15SIZEi – 32.1RANKi + 1222COMMONAPPi (2.18) N=49 R2 =.724 R2 =.

APPLICATIONi = 523.3 + 2.15SIZEi – 32.1RANKi

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+ 1222COMMONAPPi (2.18)

N=49 R2 =.724 R2 =.705 APPLICATIONi = the number of applications received

by the ith college in 2007

SIZEi = the total number of undergraduate

students at the ith college in 2006 RANKi = the U.S. News10 rank of the ith college

(1 = best) in 2006

COMMONAPPi = a dummy variable equal to 1 if the ith college allowed the use of the Common

Application in 2007 and 0 otherwise. 

  1. Take a look at the signs of each of the three estimated regression coefficients. Are they what you would have expected? Explain.
  2. Carefully state the real-world meaning of the coefficients of SIZE and RANK. Does the fact that the coefficient of RANK is 15 times bigger (in absolute value) than the coefficient of SIZE mean that the ranking of a college is 15 times more important than the size of that college in terms of explaining the number of applications to that college? Why or why not?

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