Question

The following data are the monthly salaries y and the grade point averages x for students who obtained a bachelor's degree in business administration.

GPA	Monthly Salary ($)
2.6	3,500
3.4	3,900
3.6	4,200
3.2	3,700
3.4	4,100
3	2,500

The estimated regression equation for these data is  = 250 + 1,062.5x and MSE =298,125.

a. Develop a point estimate of the starting salary for a student with a GPA of 3.0 (to 1 decimal).
$

b. Develop a 95% confidence interval for the mean starting salary for all students with a 3.0 GPA (to 2 decimals).
$ (  ,  )

c. Develop a 95% prediction interval for Ryan Dailey, a student with a GPA of 3.0 (to 2 decimals).
$ (  ,  )

Answer 1

The statistical software output for this problem is :

a)

Point estimate = 3437.5

b)

$ (2711.79 , 4163.21)

(c)

$ (1756.79 , 5118.21)