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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.
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