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 ($) 2.7 3,500 3.5 3,900 3.7 4,200 3.2 3,700 3.4 4,200 2.7 2,400 The estimated regression equation for these data is ŷ = -568.2 + 1,318.2x and MSE =181,477. 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

a) The point estimate of the starting salary for a student with a GPA of 3.0 is

? = -568.2 + 1,318.2(3) = 3,386.4

b)