Peer pressure and choice of major. A study followed a

Chapter , Problem 6.61

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Peer pressure and choice of major. A study followed a cohort of students entering a business/economics program.18 All students followed a common track during the first three semesters and then chose to specialize in either business or economics. Through a series of surveys, the researchers were able to classify roughly 50% of the students as either peer driven (ignored abilities and chose major to follow peers) or ability driven (ignored peers and chose major based on ability). When looking at entry wages after graduation, the researchers conclude that a peer-driven student can expect an average wage that is 13% less than that of an ability-driven student. The report states that the significance level is P 0.09. Can you be confident of the researchers conclusion regarding the wage decrease? Explain your answer.