Suppose a researcher collects a random sample of data on earnings of stu- dents who graduated from all UK universities.

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answerhappygod
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Suppose a researcher collects a random sample of data on earnings of stu- dents who graduated from all UK universities.

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Suppose a researcher collects a random sample of data on
earnings of stu- dents who graduated from all UK universities. The
researcher runs a regression of earnings on a dummy variable
capturing whether each student attended a top 5 university or not.
The regression shows that the students who graduated from the top 5
universities earned 20% more in salary per year than the students
who did not. Discuss a potential bias in this regression study. How
can the researcher correct for this bias?
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