4-21 The following data give the starting salary for stu- dents who recently graduated from a local university and accepted jobs soon after graduation. The starting salary, grade-point average (GPA), and major (busi- ness or other) are provided. SALARY GPA Major SALARY GPA Major $29,500 3.1 Other $46,000 3.5 Business $39,800 3.8 Business $42,000 $31,500 $36,200 3.4 2.1 2.5 Business Other Business $36,500 2.9 Other (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 sal- ary for a business major compared to a nonbusi- ness major? (d) Do you believe this model is useful in predicting the starting salary? Justify your answer, using in- formation provided in the computer output.

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