Each year a nationally recognized publication conducts its "Survey of America's Best Graduate and Professional Schools." An academic advisor wants to predict the typical starting salary of a graduate at a top business school using GMAT score of the school as a predictor variable. A simple linear regression of SALARY versus GMAT using 25 data points is shown below. bo = - 92,040 b, = 228 s = 3213 R = 0.66 r= 0.81 df 23 t 6.67 Give a practical interpretation of R² = 0.66. O A. The value of R2 indicates that 66% of the sample variation in SALARY can be explained by using GMAT in a straight-line model. O B. The value of R2 indicates that SALARY can be predicted correctly 66% of the time using GMAT in a straight-line model. O C. The value of R2 indicates that 66% of the differences in SALARY are caused by differences in GMAT scores. O D. The value of R2 indicates that SALARY is estimated to increase $0.66 for every 1-point increase in GMAT.
Each year a nationally recognized publication conducts its "Survey of America's Best Graduate and Professional Schools." An academic advisor wants to predict the typical starting salary of a graduate at a top business school using GMAT score of the school as a predictor variable. A simple linear regression of SALARY versus GMAT using 25 data points is shown below. bo = - 92,040 b, = 228 s = 3213 R = 0.66 r= 0.81 df 23 t 6.67 Give a practical interpretation of R² = 0.66. O A. The value of R2 indicates that 66% of the sample variation in SALARY can be explained by using GMAT in a straight-line model. O B. The value of R2 indicates that SALARY can be predicted correctly 66% of the time using GMAT in a straight-line model. O C. The value of R2 indicates that 66% of the differences in SALARY are caused by differences in GMAT scores. O D. The value of R2 indicates that SALARY is estimated to increase $0.66 for every 1-point increase in GMAT.
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![Each year a nationally recognized publication conducts its "Survey of America's Best Graduate and Professional Schools." An academic advisor wants to predict the
typical starting salary of a graduate at a top business school using GMAT score of the school as a predictor variable. A simple linear regression of SALARY versus
GMAT using 25 data points is shown below.
bo = - 92,040 b, = 228 s = 3213 R2 = 0.66
r= 0.81
df = 23 t= 6.67
Give a practical interpretation of R2 = 0.66.
O A. The value of R2 indicates that 66% of the sample variation in SALARY can be explained by using GMAT in a straight-line model.
B. The value of R2 indicates that SALARY can be predicted correctly 66% of the time using GMAT in a straight-line model.
O C. The value of R2 indicates that 66% of the differences in SALARY are caused by differences in GMAT scores.
O D. The value of R2 indicates that SALARY is estimated to increase $0.66 for every 1-point increase in GMAT.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fa6bda8d8-52c2-4340-a011-0777fdb30e6a%2F4f0e4199-6d68-46e5-af67-5b3758807dc4%2F4t4zlzk_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Each year a nationally recognized publication conducts its "Survey of America's Best Graduate and Professional Schools." An academic advisor wants to predict the
typical starting salary of a graduate at a top business school using GMAT score of the school as a predictor variable. A simple linear regression of SALARY versus
GMAT using 25 data points is shown below.
bo = - 92,040 b, = 228 s = 3213 R2 = 0.66
r= 0.81
df = 23 t= 6.67
Give a practical interpretation of R2 = 0.66.
O A. The value of R2 indicates that 66% of the sample variation in SALARY can be explained by using GMAT in a straight-line model.
B. The value of R2 indicates that SALARY can be predicted correctly 66% of the time using GMAT in a straight-line model.
O C. The value of R2 indicates that 66% of the differences in SALARY are caused by differences in GMAT scores.
O D. The value of R2 indicates that SALARY is estimated to increase $0.66 for every 1-point increase in GMAT.
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Given
predictor variable = GMAT Score
Response variable = Starting salary
n = 25 points
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