## Question

###### Study Tne I0p MBA programs attemptedpredict the average starting salary (in OOO"s) of graduates 0l the program based on the amouni o (uitlon (In $1000"s) charged bY Ihe program and the averaqe GMA score the program students. The results o regression aalysis based 0n & sample / 75 MBA programs shown belov;Least Squares Linear Regression SalaryPredictor Variables Coefficient Sid Error VIF Constant 203.402 6573 3.94 0.0002 G mat 0,39412 09039 4,36 0,O000 Tultion 0.92012 0.17875 5.15 0

study Tne I0p MBA programs attempted predict the average starting salary (in OOO"s) of graduates 0l the program based on the amouni o (uitlon (In $1000"s) charged bY Ihe program and the averaqe GMA score the program students. The results o regression aalysis based 0n & sample / 75 MBA programs shown belov; Least Squares Linear Regression Salary Predictor Variables Coefficient Sid Error VIF Constant 203.402 6573 3.94 0.0002 G mat 0,39412 09039 4,36 0,O000 Tultion 0.92012 0.17875 5.15 0.0000 The mode was then used credie 950 contidence and prediclion Intervals Ior Y and for E(Y) when the (uition charged by the MBA program was {75.000 and (he GMAT cote was 675. The resuIbs = shown here: 9593 conlidence inlerval Ior E(Y): (126.610. 136,6401 95%a prediction interval for (90,113,+173,160) Which of the following inlerpretations correci want to use (he model to estimate E(Y)or all MBA programs= A) We are 959 confident that the average starting salary for graduates 0f = single MBA program that charges $ 75,00D tulllon and nas an average GMAT score 0 675 wili (all between 1126.610 and 136,640. 0) We are 95"0 conlidant Ihat (he Lrjo slarling salary Ior graduates 0 = singla MBA program that charges 75.000 tulllon and has an average GMAT score 0 675 wiii Iall between 190.13and /173.16.30. We are 9598 conildent Ihat the average o/ all starting salarles Ior graduates of ali MBA programs Uhat charge 575,000 tulllon and have A0 averago GMAT scord 0i 675 wiil fall belwoun 126.610and ,136.640, D) We are 95"e contident that the average of all starting salarles Ior graduates of all MBA programs that charge $75,000 In tultion and have an average GMAT score 0 675 will fall botwuan $90,113 and !173.16,30 Answer Ina quastlon Tcue or Falsa, 12 The conlldence Interval for Ihe moan Ely) marrowar that Iha prediction Intarval for ya Truo BI Fulse Solve tha problom Considar Ihe Interacilon modol E(v) 36+ |,2*1 2 4*2 2*1*2. Detarmlne Uha chanqe In E(y) whon *| changod Irom 6 to and *2 held Mxed a Ai1.8 B) 10.8 Ci11 01 42