The figure shows is a plot and a fitted linear regression line of the age-earnings profile of 1,744 individuals, taken from the Current Population Survey. 
(a)Describe the problems in predicting earnings using the fitted line. What would the pattern of the residuals look like for the age category under 40?
(b)What alternative functional form might fit the data better?
(c)What other variables might you want to consider in specifying the determinants of earnings?
Definitions:
Butanoic Acid
An organic compound with the formula C4H8O2, also known as butyric acid, characterized by its unpleasant smell and occurrence in butter and animal fat.
Bromoacetone
An organic compound with the formula C3H5BrO, used in the past as a tear gas.
Bromodiiodomethane
A halogenated methanol compound with the formula CH2BrI2, often used in organic synthesis and as a dense fluid for mineral separation.
Necessary Reagents
Specific chemicals required to carry out a particular chemical reaction.
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