The following data provide the starting salary for students who recently graduated from a local university and accepted jobs soon after graduation. The starting salary, gradepoint average (GPA), and major (business or other) are provided.
SALARY 
$29,500 
$46,000 
$39,800 
$36,500 
GPA 
3.1 
3.5 
3.8 
2.9 
Major 
Other 
Business 
Business 
Other 
SALARY 
$42,000 
$31,500 
$36,200 

GPA 
3.4 
2.1 
2.5 

Major 
Business 
Other 
Business 

Coefficients  SE  Tstat  Pvalue  
Intercept  24328  9025  2.696  0.0543 
GPA(X1)  3027  3234  0.936  0.4023 
Major(X2)  6684  3594  1.86  0.1364 
Linear model can be written as
Y' = 24328 + 3027*X1 + 6684*X2
b,
For a student with GPA= 3
with business major X1 = 3 and X2 = 1
Y' = 24328 + 3027*X1 + 6684 * X2
by substituiting X1 and X2.
Y' = 24328 + 3027 * 3 + 6684*1
=40093
c.
Salary of the business major is high when compared to no business major as the predicted value shows $40093.
d.
df  SS  MS  F value  P(>f)  
Regression  2  137598209  68799105  4.386  0.098 
Residuals  4  62738933  15684733  
Total  6  200337142 
Pvalue of regression is 0.098(>0.05)
We can conclude that there does not exist any significant relationship between the variables.
R^2 = SSR/SST = 0.6868(68.68%)
Regression model is somehow only partially useful to predict starting salary.
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