Data are available from the National Longitudinal Study of Youth (NLSY). Summary
ID: 3271508 • Letter: D
Question
Data are available from the National Longitudinal Study of Youth (NLSY). Summary data are available for college graduates from ten college majors (excluding engineering); for each major, data are available for the graduates’ average college GPA, their average annual income, average SAT math score, average SAT verbal score, and number of students who had chosen that major (https://www.iwu.edu/economics/PPE17/oehrlein.pdf ).
Major
Average GPA
Average Income
Average SAT Math
Average SAT Verbal
Sample Size
Biology
3.171
$ 16,692
567.55
554.79
113
Business
3.054
$ 23,733
537.62
520.03
459
Communications
3.057
$ 19,612
529.08
535.20
133
Computer Science
3.015
$ 24,623
571.51
537.79
152
Criminology
2.992
$ 21,170
448.68
477.63
96
Education
3.101
$ 17,817
493.50
500.00
218
Art
3.183
$ 17,969
564.10
576.92
127
Nursing
3.140
$ 19,502
531.75
522.22
129
Health
3.106
$ 20,640
535.96
530.70
121
Psychology
3.200
$ 17,167
554.08
579.59
141
What is a “reasonable guess” for the average error when predicting average income for a given college major?
A. $551
B. $1744
C. $2692
D. $5515
E. $851
Major
Average GPA
Average Income
Average SAT Math
Average SAT Verbal
Sample Size
Biology
3.171
$ 16,692
567.55
554.79
113
Business
3.054
$ 23,733
537.62
520.03
459
Communications
3.057
$ 19,612
529.08
535.20
133
Computer Science
3.015
$ 24,623
571.51
537.79
152
Criminology
2.992
$ 21,170
448.68
477.63
96
Education
3.101
$ 17,817
493.50
500.00
218
Art
3.183
$ 17,969
564.10
576.92
127
Nursing
3.140
$ 19,502
531.75
522.22
129
Health
3.106
$ 20,640
535.96
530.70
121
Psychology
3.200
$ 17,167
554.08
579.59
141
Explanation / Answer
when Average Income is taken as dependent variable
and Average GPA as independent variable
standard error = 1743.97237
hence option B) 1744 is correct
SUMMARY OUTPUT Regression Statistics Multiple R 0.791819441 R Square 0.626978026 Adjusted R Square 0.58035028 Standard Error 1743.97237 Observations 10 ANOVA df SS MS F Significance F Regression 1 40896589.48 40896589 13.44646 0.006337 Residual 8 24331517.02 3041440 Total 9 65228106.5 Coefficients Standard Error t Stat P-value Lower 95% Upper 95% Lower 95.0% Upper 95.0% Intercept 111997.4617 25123.70805 4.45784 0.002117 54062.09 169932.8 54062.09 169932.8 Average GPA -29693.079 8097.506173 -3.66694 0.006337 -48366 -11020.2 -48366 -11020.2Related Questions
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