ACS Sample Industries

i. Describe each regression in words and as an equation. Describe how you created your “new” variable
ii. Describe what the coefficient on the business degree indicator variable means in regression A versus regressions C and D.
iii. Interpret all of the other coefficients in Regression C.
iv. Compare the adjusted R2 between Regressions A, B, C and D and interpret the comparison.

a. A critic of business education argues that the wage premium associated with business education is explained entirely by the fact that people with business degrees work longer hours. Use the regression results to provide an argument for or against this premise.
b. Are business degrees the only types of degrees that earn a premium in this industry? Which degree fields are associated with the highest wages?
Which degree fields are associated with the lowest wages? What explains this pattern?
c. Describe the limitations of your analysis, as well as what additional information would be useful to collect and study in the future. If you could add one or two variables to your analysis, what would they be and why?