Homeuo onuc4 Homework #4 Due Date: Tuesday the 31\" of October at the beginning

Question

Homeuo onuc4 Homework #4 Due Date: Tuesday the 31" of October at the beginning of the class or eight The following table contains the ACT scores and the GPA (grade point average) f college students. Grade point average is based on a four-point scale and has been rounded to int scaleandhasbeen decimal.(bo it oneExcer Student GPA 2.8 3.4 ACT 21 24 26 29 25 3.6 3.0 2.7 3.730 6 8 7125 2s81 a) Estimate the relationship between GPA and ACT using OLS; that is, obtain the intercept and slope estimates in the equation in the equation b) How much higher is the GPA predicted to be if the ACT score is increased by five points? c) What is the predicted value of GPA when ACT = 20?

Explanation / Answer

a) The regression model is thus given by GPA = 0.568 + 0.102*ACT. This obtained from excel.

b). The increase in the GPA will be given by the increase in the ACT score multiplied by the slope coefficient. Thus the increase in GPA will be (5*0.102) = 0.510.

c) When ACT=20, the GPA value will be GPA = 0.568 + (0.102*20) = 2.608.

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