Question

In: Statistics and Probability

2. Consider the following data on salaries and experience. Persons 2,4,6,8,and 9 have MBA degrees. All...

2. Consider the following data on salaries and experience. Persons 2,4,6,8,and 9 have MBA degrees. All others only have undergraduate degrees.

  1. Calculate the regression of Salary on Experience within a model that controls for whether a person has an MBA or not.

b. Print the data set that allows you to do this regression. Sketch the graph the estimated regression that clearly indicates the impact of a MBA degree on Salary.

c. What is the market value of the MBA degree?

Person           Salary              Experience

1                   $130,468            10 Years

2                       62,250              1

3                       50,000              2.3

4                     140,000              9

5                     110,000              8

6                      80,050              2.8

7                      95,772              7

8                     110,000              6

9                       87,752              4.2

10                     79,290              5

Solutions

Expert Solution

here,92.34% of the variation in salary


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