Question

The following data are the monthly salaries y and the grade point averages xfor students who obtained a bachelor's degree in business administration.

GPA	Monthly Salary ($)
2.6	3,600
3.5	3,800
3.6	4,300
3.1	3,800
3.4	4,200
3	2,200

The estimated regression equation for these data is  = 358.6 + 1,028.6x and MSE =533,607. Use Table 1 of Appendix B.

a. Develop a point estimate of the starting salary for a student with a GPA of 3.0 (to 1 decimal).
$

b. Develop a 95% confidence interval for the mean starting salary for all students with a 3.0 GPA (to 2 decimals).
$ (  ,  )

c. Develop a 95% prediction interval for Ryan Dailey, a student with a GPA of 3.0 (to 2 decimals).
$ (  ,  )

Answer 1

The statistical software output for this problem is:

Hence,

a) Point estimate = $ 3444.3

b) 95% confidence interval:

$ (2484.80, 4403.77)

c) 95% prediction interval:

$ (1200.63, 5687.94)