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Complete Question 3. a. Consider the following regression model used to predict an individual's salary: Salary = Be + B Age + B2Age? +B3Female +
Complete Question 3.
a. Consider the following regression model used to predict an individual's salary: Salary = Be + B Age + B2Age? +B3Female + B4Experience + Bs College + B6Certificates + By Analyst + BgDiplomat + B, Explorer + E (1) Notice that the dummy variable Sentinel is not included in the regression model - this is to avoid the "dummy variable trap". Thus, Sentinel will be the reference category and the coefficient estimates on B2, B3, and , will be relative to the Sentinel personality type. Further notice the Age quadratic variable included in the model. You will need to appropriately create this variable and add it to the regression model. This indicates that there may be an optimal age in regards to salary level. That is, maybe as you get older your salary continues to increase, and beyond some optimal age your salary begins to slow down and decrease relative to others. Complete the above model under both linear and log-linear specifications of the dependent variable. Indicate variables that are significant at the 5% level with ** next to the coefficient estimate (i.e., p- valueStep by Step Solution
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