(solution) The following data give the starting salary for students who

(solution) The following data give the starting salary for students who

The following data give the starting salary for students who recently graduated from a local university and accepted jobs soon after graduation. The starting salary, grade-point average (GPA), and major (business or other) are provided.

Salary$29,500 $46,000 $39,800 $36,500

GPA3.13.53.82.9

MajorOtherBusinessBusinessOther

Salary$42,000 $31,500 $36,200

MajorBusinessOtherBusiness

(a) Using a computer, develop a regression model that could be used to predict starting salary based on GPA and major.

(b) Use this model to predict the starting salary for a business major with a GPA of 3.0.

(c) What does the model say about the starting salary for a business major compared to a nonbusiness major?

(d) Do you believe this model is useful in predicting the starting salary? Justify your answer, using information provided in the computer output.