Suppose You Are a Potential College Student That Is Interested

Essay

Suppose you are a potential college student that is interested in determining whether it is worthwhile to declare a certain major.In an effort to find the answer,you collect data on 1,247 college who majored in HUMANITIES,SCIENCE,ENGINEERING,or ENGLISH and you estimate the sample regression function (standard errors in parentheses) $$\begin{array} { lllllll } log ~\widehat {Sal}ary _ { i } =& 13.81 + &0.03 \text { GPA } _ { i } + &0.02 \log \text { StudyHours } _ { i } +& 0.01 \text { Science } _ { i } + &0.08 \text { Engineering } _ { i } +& 0.02 \text { English } _ { i } \\& (2.97)& (0.0005)& (0.00003)&( 0.02 ) & ( 0.025 ) & ( 0.001 )\end{array}$$
a)Do you think omitted variable bias is a potential problem in this case? Why? Explain.
b)What is the problem associated with omitted variable bias? Explain.
c)How might you control for the potential omitted variable bias in this case? Explain.