According to the World Health Organization, obesity has reached epidemic proportions globally. While obesity has generally been linked with chronic disease and disability, researchers argue that it may also affect salaries. In other words, the body mass index (BMI) of an employee is a predictor for salary. (A person is considered overweight if his/her BMI is at least 25 and obese if BMI exceeds 30.) Consider salary data of 30 college-educated men with their respective BMI and their race defined as 1 for white and 0 for nonwhite.

A portion of the data is shown in the accompanying table; the entire data set, labeled BMI_Salary, can be found on the text website.

a. Estimate a model for Salary using BMI and Race as the explanatory variables. Determine if BMI influences salary at the 5% level of significance.
b. What is the estimated salary of a white college-educated worker with a BMI of 30? Compute the corresponding salary of a nonwhiteworker.

Transcribed Image Text:

Salary ($1,000) 34 34 BMI Race 45 21