The following data are the monthly salaries and the grade point averages for students who obtained a bachelor's degree in business administration. GPA Monthly Salary ($) 2.6 3,600 3.4 3,900 3.6 4,300 3.2 3,800 3.5 4,200 2.9 3,900 The estimated regression equation for these data is and . Use Table 1 of Appendix B. a. Develop a point estimate of the starting salary for a student with a GPA of (to 1 decimal). b. Develop a confidence interval for the mean starting salary for all students with a GPA (to 2 decimals). ( , ) c. Develop a prediction interval for Ryan Dailey, a student with a GPA of (to 2 decimals). ( , ) d. Discuss the differences in your answers to parts (b) and (c).
Correlation
Correlation defines a relationship between two independent variables. It tells the degree to which variables move in relation to each other. When two sets of data are related to each other, there is a correlation between them.
Linear Correlation
A correlation is used to determine the relationships between numerical and categorical variables. In other words, it is an indicator of how things are connected to one another. The correlation analysis is the study of how variables are related.
Regression Analysis
Regression analysis is a statistical method in which it estimates the relationship between a dependent variable and one or more independent variable. In simple terms dependent variable is called as outcome variable and independent variable is called as predictors. Regression analysis is one of the methods to find the trends in data. The independent variable used in Regression analysis is named Predictor variable. It offers data of an associated dependent variable regarding a particular outcome.
The following data are the monthly salaries and the grade point averages for students who obtained a bachelor's degree in business administration.
| GPA | Monthly Salary ($) |
| 2.6 | 3,600 |
| 3.4 | 3,900 |
| 3.6 | 4,300 |
| 3.2 | 3,800 |
| 3.5 | 4,200 |
| 2.9 | 3,900 |
The estimated regression equation for these data is and . Use Table 1 of Appendix B.
a. Develop a point estimate of the starting salary for a student with a GPA of (to 1 decimal).
b. Develop a confidence interval for the mean starting salary for all students with a GPA (to 2 decimals).
( , )
c. Develop a prediction interval for Ryan Dailey, a student with a GPA of (to 2 decimals).
( , )
d. Discuss the differences in your answers to parts (b) and (c).
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