Question
Suppose we are able to collect a random sample of data on economics majors at a large university. Further suppose that, for those entering the
Suppose we are able to collect a random sample of data on economics majors at a large university. Further suppose that, for those entering the workforce, we observe their employment status and salary 5 years after graduation. Let SAL = $ salary for those employed, GPA = grade point average on a 4.0 scale during their undergraduate program, with METRICS = 1 if student took econometrics, METRICS = 0 otherwise.
a. Consider the regression model SAL = 1 + 2GPA + 3METRICS + e. Should we consider this a causal model, or a predictive model? Explain your reasoning.
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