Problem related to regression model


Consider the following regression model:

Salary(in $ 1000) = 20 + (2)X + (5)Z + (0.7)(X*Z)

where X is the number of years of experience, and Z is an indicator variable that is 1 if you have obtained an MBA degree and 0 otherwise; X*Z is the product between years of experience and the indicator variable Z.

Graph salary (Y) against years of experience (X). Do this for both groups (without MBA, with MBA) on the same graph.

Does experience matter? Is it worth getting an MBA? Interpret the graph.

Solution Preview :

Prepared by a verified Expert
Basic Statistics: Problem related to regression model
Reference No:- TGS0686719

Now Priced at $20 (50% Discount)

Recommended (97%)

Rated (4.9/5)