2. (2 points) Now suppose you estimate the model in question 1 and get the follo

Question

2. (2 points) Now suppose you estimate the model in question 1 and get the following outpat: Source dr MS Murber of obe 242 6.21 0.0139 0.0427 Adj R-squared0.0359 36557 Mode 829558811 Residual 18.5765406 1 829558811 FobF 139 133644177 R-squared Total 19.4060994 140 138614996Root MSE colGPA 95% conf. Interval] 0.014 0053862 ACT 027064 0485417 0108628 cone 2.402979 2642027 9.100.0001.98060 2.925355 Using the above output, write down the estimated regression equation (or OLS regression line): 3. (2 points) Using the results obtained above and your estimatel regression equation in question 2. comment on the direction of the relationship between college GPA and ACT test score performance What would the predicted value of colGPA be when ACT 25?

Explanation / Answer

Answer

2)

colGPA = a + b*ACT

where a is intercept and in this case = 2.402979 ~ 2.403

b is slope coefficient and in this question b = 0.027064 ~ 0.0271

Hence

colGPA = 2.402979 + 0.027064*ACT. If we round of our coefficients we have

colGPA = 2.403 + 0.0271*ACT------------------------(1)

3) Note that p value of slope coefficint (b) is lesser than 0.05, Hence ACT is significant. Hence ACT statistically effects colGPA.

We can see from regression result that coefficient of b is 0.0271 which is greater than 0 i.e. Positive hence There is direct relationship between ACT and colGPA i.e. If ACT increases college GPA also increases and it should increase also.

If ACT = 25, Putting this value of ACT in (1) we get

colGPA = 2.403 + 0.0271*25 = 3.08

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