Consider the following data on salaries and experience. Persons 2,4,6,8,and 9 have MBA degrees. All others only have undergraduate degrees.

Person Salary Experience

1 $130,468 10 Years

2 62,250 1

3 50,000 2.3

4 140,000 9

5 110,000 8

6 80,050 2.8

7 95,772 7

8 110,000 6

9 87,752 4.2

10 79,290 5

a. Calculate the regression of Salary on Experience within a model that controls for whether a person has an MBA or not.

b. What is the market value of the MBA degree?

c. Calculate a 95% Confidence Interval for expected Salary for a person with 3 years of Experience with an MBA.