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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?
2. Suppose how long the battery charge of a laptop lasts is normally distributed with mean 140 minutes
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This note was uploaded on 12/05/2010 for the course ECON 120A taught by Professor M.abajian during the Spring '10 term at San Diego.
 Spring '10
 M.Abajian
 Econometrics

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