mod 16 chapter 13
The following data are the monthly salaries y and the
grade point averages x for students who obtained a
bachelor’s degree in business administration.
1. Calculate 𝑥̅ .
2. Calculate 𝑦̅.
3. Use the least squares method to develop the estimated
regression equation. Use two decimal points in your answers for
b0 and b1. Type the answer as a formula with two decimal
places in each number.
4. Calculate the value of 𝑦̂1 .
5. Calculate the value of 𝑦̂2 .
6. Calculate the value of 𝑦̂3 .
7. Calculate the value of 𝑦̂4 .
8.Calculate the value of 𝑦̂5 .
9. Calculate the value of 𝑦̂6
10. Compute the Sum of Squares due to Regression, known as
SSR.
Compute the Sum of Squares Due to Error, known as SSE.
Compute the Total Sum of Squares, known as TSS (or SST).
Compute r2.
What is the value of the sample correlation coefficient?
Is the relationship between GPA and salary positive or
negative?
Based on your regression analysis, how much does predicted
salary change when GPA increases by 1.0?
Refer to the Hypothesis Testing Summary to find the equations
needed to
calculate the next few answers.
Calculate the Mean Squared Error (MSE), known as 𝑠2, as an
estimate of σ2. 𝑒
Calculate the Standard Error of the Estimate, known as
se, or just s.
Calculate the estimated standard deviation of b1, known
as 𝑠𝑏1 .
Calculate the test statistic t used to test the significance in
simple linear regression.
How many degrees of freedom are there?
Determine a range for the p-value using the t statistic.
Conduct a hypothesis test using your t statistic to see if there
is a statistically significant relationship between GPA and Salary
based on the sample. Use α = 0.05. State the null and
alternative hypotheses. Give your conclusion in both statistical
and business terms. Write your answer on paper and upload a picture
or scan.