Question

1. A national job placement company is interested in developing a model that might be used to explain the variation in starting salaries for college graduates based on the college GPA score. The following data were collected through a random sample of the clients with which this company has been associated.

GPA Score	Starting Salary (RM)
3.20	3,500
3.40	2,950
2.90	3,000
3.60	3,640
2.80	3,150
2.50	2,900
3.00	3,320
3.60	3,760
2.90	3,200
3.50	3,600

1. Obtain the relationship between score GPA and starting salary model by using the least squares regression method.

Answer 1

Answer:-

Given That:-

a. A national job placement company is interested in developing a model that might be used to explain the variation in starting salaries for college graduates based on the college GPA score. The following data were collected through a random sample of the clients with which this company has been associated.

i. Obtain the relationship between score GPA and starting salary model by using the least squares regression method.

Given,

We will find an equation of the regression line in 4 steps.

Step 1:

Find X . Y and X² as it was done in the table below.

X	Y	X.Y	X.X
3.2	3500	11200	10.24
3.4	2950	10030	11.56
2.9	3000	8700	8.41
3.6	3640	12104	12.96
2.8	3150	8820	7.84
2.5	2900	7250	6.25
3	3320	9960	9
3.6	3760	13536	12.96
2.9	3200	9280	8.41
3.5	3600	12600	12.25

Step 2:

Step 3:

Use the following equations to find a and b

Step 4:

Substitute a and b in regression equation formula

y = a + b * x

y = 1352.461 + 620.872 * x

The regression equation can be written as:

Starting Salary = 1352.461 + 620.872xGPA Score

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