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
3.1	3,800
3.5	4,200
3	2,300

The estimated regression equation for these data is ŷ = 84.3 + 1,114.3x and MSE =416,464.

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).
$ ( , )

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Answer 1

a. Develop a point estimate of the starting salary for a student with a GPA of 3.0 (to 1 decimal).
$3,427.1

b. Develop a 95% confidence interval for the mean starting salary for all students with a 3.0 GPA (to 2 decimals).
$ (2,579.49 , 4,274.79)

c. Develop a 95% prediction interval for Ryan Dailey, a student with a GPA of 3.0 (to 2 decimals).
$ (1,445.00 , 5,409.29 )

Predicted values for: Monthly Salary ($)
		95% Confidence Interval		95% Prediction Interval
GPA	Predicted	lower	upper	lower	upper
3	3,427.1	2,579.49	4,274.79	1,445.00	5,409.29