The chairman of the marketing department at a large state university undertakes

Question

The chairman of the marketing department at a large state university undertakes a study to relate starting salary (y) after graduation for marketing majors to grade point average (GPA) in major courses. To do this, records of seven recent marketing graduates are randomly selected, and the data shown below are obtained. The MINITAB output obtained by fitting a least squares regression line to the data is below.

Find b1 and b0. Interpret the meanings of b0 and b1. Does the interpretation of b0 make practical sense? (Round your b1 answer to 3 decimal places"b0" answer to 2 decimal places. Leave no cells blank - be certain to enter "0" wherever required.)

Use the least squares line to compute a point estimate of the mean starting salary for all marketing graduates having a grade point average of 3.25 and a point prediction of the starting salary for an individual marketing graduate having a grade point average of 3.25. (Round your answer to 3 decimal places.)

The chairman of the marketing department at a large state university undertakes a study to relate starting salary (y) after graduation for marketing majors to grade point average (GPA) in major courses. To do this, records of seven recent marketing graduates are randomly selected, and the data shown below are obtained. The MINITAB output obtained by fitting a least squares regression line to the data is below.

Explanation / Answer

a)

Starting Salary=14.82+5.707*GPA

b0=14.82 (Constant value, this means that starting salary would be 14.82 even in the absence of GPA. Ideally this does not make sense)

b1=5.707 (This means that starting salary would go up by 5.707 for every increase of 1 in GPA keeping all other things constant)

b)

Starting Salary=14.82+5.707*GPA

y=14.82+5.707*3.26=33.42482

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