120PM14 - Midterm Exam 1 Practice Problems Econometrics...

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Midterm Exam 1 Practice Problems - Econometrics 120A 1. The following is a list of starting median salaries for college graduates by profession: Degree Starting Median Salary Education 36,200 Horticulture 37,200 Music 34,000 Social Work 33,400 Theology 34,800 (a) What is the average starting salary across the college degrees listed? (b) What is the median starting salary among the college degrees listed? (c) Suppose that to the above list you add the starting salary for Economics majors, which is 50,200. What is the average? How about the mean? (d) Compare your answer to (c) with that you found in (a) and (b). Does adding the starting salary for Economics majors affect the mean and the median in the same way? Which one is more affected by adding this new observation? Why? Justify your answer. (e) Suppose the federal income tax is 30%. What is the average salary after taxes for those profes- sions in the list (not including economics)? What is the median salary after taxes?
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