Chapter 14, Problem 39PS

The chair of the accounting department plans to develop a regression model to predict the grade point average in accounting for those students who are graduating and have completed the accounting major, based on a student’s SAT score and whether the student received a grade of B or higher in the introductory statistics course ( $0=no\text{ and }1=yes$ ).

a. Explain the steps involved in developing a regression model for these data. Be sure to indicate the particular models you need to evaluate and compare.

b. Suppose the regression coefficient for the variable whether the student received a grade of B or higher in the introductory statistic course is $+\mathrm{0.30.}$ How do you interpret this result?