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Question We are using the following model to estimate how the starting salary for people with different educational background: y a+b*bachelor+ e where bachelor is a dummy variable: 1 for one with a bachelors or higher degree, 0 otherwise. What does b mean here: The starting salary for one with a bachelors degree How much one can make by getting a bachelors or higher degree A. B. C. The starting salary for one with a MBA degree D. How much more one can make by getting a bachelors or higher degree compared to others with nk degrees Reflect in ePortfolio Activity Details Task: View this topic
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Answer #1

b is the coefficient of a dummy variable which represents that how much more one can make by getting a bechalor or higher degree as compared to the ones with lesser education.

Option D is correct.

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