Question

The following data give the starting salary for students who recently graduated from a local university and accepted jobs soon after graduation. The starting salary, grade-point average (GPA), and major (business or other) are provided.

SALARY	$29,500	$46,000	$39,800	$36,500
GPA	3.1	3.5	3.8	2.9
Major	Other	Business	Business	Other
SALARY	$42,000	$31,500	$36,200
GPA	3.4	2.1	2.5
Major	Business	Other	Business

1. Using a computer, develop a regression model that could be used to predict starting salary based on GPA and major.
2. Use this model to predict the starting salary for a business major with a GPA of 3.0.
3. What does the model say about the starting salary for a business major compared to a nonbusiness major?
4. Do you believe this model is useful in predicting the starting salary? Justify your answer, using information provided in the computer output.

PLEASE SHOW EXCEL CALCULATIONS

Answer 1

ANSWER

(a)

The regression model y = 24328 + 3026.6667*x1 + 6684*x2

(b)

y = 24328 + 3026.6667*3 + 6684*1 = 40092.0001

(c)

The starting salary for a business major will be 6684 more than a nonbusiness major.

(d)

Since 68.7% of the variation in the model is explained by the model which is less than 70%, this model is not useful.

================

DEAR STUDENT,

IF YOU HAVE ANY QUERY PLEASE ASK ME IN THE COMMENT BOX,I AM HERE TO HELP YOU.PLEASE GIVE ME POSITIVE RATING..

****************THANK YOU****************