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Mathematics, 28.05.2020 14:59 soom6080
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. Total GMAT scores range from 200 to 800. A simple linear regression of SALARY versus GMAT using 25 data points yields the regression equation given below. y = 228x - 92,040 Give an interpretation of the y-intercept. The value has no practical interpretation since a GMAT of 0 is nonsensical and outside the range of the sample data. We estimate the base SALARY of graduates of a top business school to be $-92,040. We estimate SALARY to decrease $92,040 for every 1-point increase in GMAT. We expect to predict SALARY to within 2(92040) = $184,080 of its true value using GMAT in a straight-line model.
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