I have posted the data set of salary of school teachers for all states in the USA. Categorize all the states in four regions. Region 1: Northern States, Region 2: Southern States, Region 3: Eastern States, and Region 4: Western States.

3.  I have posted the data set of salary of school teachers for all states in the USA. Categorize all the states in four regions. Region 1: Northern States, Region 2: Southern States, Region 3: Eastern States, and Region 4: Western States.

(a)    Using region 1 as the base category, formulate a dummy variable regression model of the average annual salary of school teachers with government spending as a regressor.

(b)   Estimate the regression model using the data set.

(c)    Report the regression results and figure out which region has the highest salary. Is the difference in salary statistically significant? Explain

(d)   Formulate a dummy variable model so that you can investigate whether the gap in salary decrease with the increase in government spending?

(e)    Estimate the model you developed in part (d). Explain your results.