A researcher wants to study factors that influence salaries at a large bank. Prior to deciding on the specification for the regression model, the researcher creates a histogram of the dependent variable, salary. Based on the histogram in the data file below, what should the researcher do?

Salaries Histogram.xlsx

a. Since the histogram suggests that the salary variable is skewed, the researcher should use the natural log of salary as the dependent variable.

b. The researcher should use the salary variable as given.

c. The researcher should include a squared term to account for the nonlinearity.

d. The researcher should use a trend term.