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
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
Get Answers For Free
Most questions answered within 1 hours.