1.Consider the following regression model, where the data for Salary was recorded in dollars.

Salary = e^{10.0248 + 0.332 Age + 0.3439 PD - 0.2652 INT}, where PD is the same dummy variable as in Question 4 above. INT is the interaction between Age (in years) and PD. (Note that all the terms on the right-hand side of the equation are in the exponent.)

a.For each yearly increase in Age, what is the difference in the marginal effects in salaries between Engineering and Physics students? Provide the correct numerical answer.

b.Now you wish the predicted salary to be within plus or minus $1000 dollars of the actual salary for either physics or engineering students, regardless of age. What is the closest value (expressed as a whole number) for the standard error of the regression so you can be 99% confident in the predicted value of Salary? State your answer using the correct units!