ACS Sample Industries

i. Describe each regression in words and as an equation. Describehow you created your “new” variableii. Describe what the coefficient on the business degree indicatorvariable 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 andinterpret the comparison.a. A critic of business education argues that the wage premium associatedwith business education is explained entirely by the fact that people withbusiness degrees work longer hours. Use the regression results to providean argument for or against this premise.b. Are business degrees the only types of degrees that earn a premium inthis industry? Which degree fields are associated with the highest wages?Which degree fields are associated with the lowest wages? What explainsthis pattern?c. Describe the limitations of your analysis, as well as what additionalinformation would be useful to collect and study in the future. If youcould add one or two variables to your analysis, what would they be andwhy?

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