Write the Model Specification and Define the Variables for a Multiple

question 89

Essay

Write the model specification and define the variables for a multiple regression model to predict earnings as a function of age and level of education: high school graduate,college graduate,master degree or doctorate degree.

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Definitions:

Entrepreneur

A profit-seeking decision maker who starts with an idea, organizes an enterprise to bring that idea to life, and assumes the risk of the operation

Profit

Reward for entrepreneurial ability; sales revenue minus resource cost.

Tangible

Refers to physical assets or goods that can be seen, touched, and valued, as opposed to intangible assets like intellectual property.

Service

An activity, or intangible product, used to satisfy human wants.