Question

A politician notes that the coefficient for student-faculty ratio is negative and statistically significant. He says...

A politician notes that the coefficient for student-faculty ratio is negative and statistically significant. He says "This analysis shows that if we lower student-faculty ratios, then graduation rates will increase." This interpretation is

a) Valid

b) Invalid

Math   Statistics-And-Probability   
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Answer #1

If the coefficient is negative then it shows a negative relationship between the variables. That is as the independent variable, the dependent variable decreases.

Since coefficient for student-faculty ratio is negative and statistically significant so as the student-faculty ratio is increased then graduation rate is decrease.

Stating in another way:

Since coefficient for student-faculty ratio is negative and statistically significant so as the student-faculty ratio is decreased then graduation rate is increase.

Answer: a) valid

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