The following data are the monthly starting salaries and the Grade Point Averages (GPA) of business graduates who have obtained a first degree in accounting. x: GPA y: Monthly Salary ($) 2.1 2.5 3.3 3.5 3.1 3.6 2.8 3.5 1.9 19,000 18,000 21,000 25,000 20,000 24,000 21,000 24,000 17,000 Suppose that you want to build a simple linear regression model to relate x and y, as follows: y = Bo + Bix +: (a) Use the least squares method to determine the sample estimates, bo and b₁ of the population regression parameters, P, and ₁. You need to apply the relevant formulae and show your calculation details. (b) (c) Write down the fitted regression equation and specify the valid range of the equation. Forecast the starting salary for a graduate with GPA= 3.7. Do you think that such a forecast is reliable? Justify your answer briefly.

The following data are the monthly starting salaries and the Grade Point Averages (GPA) of business graduates who have obtained a first degree in accounting. x: GPA y: Monthly Salary ($) 2.1 2.5 3.3 3.5 3.1 3.6 2.8 3.5 1.9 19,000 18,000 21,000 25,000 20,000 24,000 21,000 24,000 17,000 Suppose that you want to build a simple linear regression model to relate x and y, as follows: y = Bo + Bix +: (a) Use the least squares method to determine the sample estimates, bo and b₁ of the population regression parameters, P, and ₁. You need to apply the relevant formulae and show your calculation details. (b) (c) Write down the fitted regression equation and specify the valid range of the equation. Forecast the starting salary for a graduate with GPA= 3.7. Do you think that such a forecast is reliable? Justify your answer briefly.

Glencoe Algebra 1, Student Edition, 9780079039897, 0079039898, 2018

18th Edition

ISBN:9780079039897

Author:Carter

Publisher:Carter

Chapter10: Statistics

Section10.5: Comparing Sets Of Data

Problem 11PPS

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