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 these data,4 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

Question

Quizplus · Accepted Answer

The difference in average yearly salary between 50-year-olds with 16 years of education and those with 12 years of education is $14,010 ($50,275 - $36,265). If we assume that the 4 additional years of education are likely to result in a proportional increase in salary, we can calculate the percentage increase as follows: 
$14,010 is 38% of $36,265 ($14,010/$36,265 x 100% = 38.6%). Therefore, the answer is B) 38 percent.

In Country X,the Average Yearly Salary of 50-Year-Olds with 16