Question

In country X, the average yearly salary of 50-year-olds with 16 years of education is $50,275, while the average yearly salary of 50-year-olds with 12 years of education is $36,265. According to this data, four additional years of education are likely to be correlated with higher future wages of about:

a. 24 percent.
b. 38 percent.
c. 50 percent.
d. 88 percent.

Answer 1

38%

Explanation:

The additional wage compared 12 years of education to 16 years of education is:

`Extra\ wage\%=(50,275-36,265)/(36,265) *100 = 38.6%`