Suppose That the Estimated Regression Equation of a College of Business

Multiple Choice

Suppose that the estimated regression equation of a College of Business graduates is given by: = 32,000 + 4,000x + 1,800D,where y is the starting salary,x is the grade point average and D is a dummy variable which takes the value of 1 if the student is a finance major and 0 if not.An accountancy major graduate with a 3.5 grade point average would have an average starting salary of:

A) $47,800
B) $46,000
C) $37,800
D) $32,000