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
GPA
3.1
3.5
3.8
2.9
Major
Other
Business
Business
Other
SALARY
$42,000
$31,500
$36,200
GPA
3.4
2.1
2.5
Major
Business
Other
Business
Using a computer, develop a regression model that could be used to predict a starting salary based on GPA and major.
Use this model to predict the starting salary for a business major with a GPA of 3.0.
What does the model say about the starting salary for a business major compared to a non-business major?
Do you believe this model is useful in predicting the starting salary? Justify your answer, using the information provided in the computer output.