Suppose You Are a Potential College Student That Is Interested

question 7

Essay

Suppose you are a potential college student that is interested in determining whether it is worthwhile to declare a certain major.In an effort to find the answer,you collect data on 1,247 college graduates who majored in HUMANITIES,SCIENCE,ENGINEERING,or ENGLISH and you estimate the sample regression function (standard errors in parentheses) $$\begin{array} { llllllll } \widehat {\text { Salary }}_{i}=&32,473.81+&5,284.37 \text { GPA }_{4}+&822.56 \text { Male }_{i}+&22,882.43 \text { Science }_{i}\\&( 1,002.97 ) &( 1,323.84 ) & ( 633.85 ) & ( 2,322.43 ) \\\end{array}$$
$$\begin{array} { llllllll } &+ 31,136.74 \text { Engineering } _ { i } + &896.11 \text { English } _ { i } \\&( 5,768.41 )&( 643.20 ) \\\end{array}$$
a)How should you interpret the estimated coefficients for SCIENCE,ENGINEERING,and ENGLISH? Draw a graph and explain.
b)How should you interpret the estimated coefficient for MALE?
c)Are the variables statistical significant at a 5% level?
d)Explain,in as much detail as possible,why the following model is not preferred to the original model. $\begin{aligned}\text { salary }_{i}=&\beta_{0} +\beta_{1} \text { GPA } \\& +\beta_{2} \text { Male }_{i}+\beta_{3} \text { Female }_{i}+\beta_{4} \text { Science }_{i} \\& +\beta_{5} \text { Engineering }_{i}+\beta_{6} \text { English }_{i}\end{aligned}$

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Definitions:

Restitution

The act of compensating for loss, damage, or injury caused, typically in legal contexts.

Indivisible

Pertaining to something that cannot be separated or divided into parts without losing its essential features or functionality.

Complete Performance

The full and exact fulfillment of all terms and obligations as specified in a contract.

Limitation of Liability Clause

A contractual provision that limits the amount one party can claim from another in case of damage, loss, or injury.