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Consider a simple linear regression model relating a high school student\'s ACT

ID: 3353114 • Letter: C

Question

Consider a simple linear regression model relating a high school student's ACT scores to his or her high school grade point average, GPA, y = BX, where,-ACT and X-GPA (Assignment using calculator) 1) Use the data on 8 students to obtain the OLS estimates for and A, and the standard errors for these estimates. 2) Comment on the direction of the relationship between GPA and ACT score. Perform a test of the null hypothesis that they are not related and draw your conclusion 3) What is the size of the R- for this regression equation? What does it mean?. (Compute using calculator 4) Please construct the 95% confidence interval for the "forecast of an individual's outcome" on the ACT using the above regression model for Xo2 or GPA-3.0 and at the sample mean of GPA The data for the problem: Student GPA 2.8 3.4 3.0 3.5 3.6 3.0 2.7 3.7 ACT 21 24 26 27 29 25 25 30 2 4 6 8

Explanation / Answer

GPA = c(2.8,3.4,3,3.5,3.6,3,2.7,3.7)
> ACT = c(21,24,26,27,29,25,25,30)
> model = lm (ACT ~ GPA)
> summary(model)

Call:
lm(formula = ACT ~ GPA)

Residuals:
    Min      1Q Median      3Q     Max
-2.9344 -1.0106 0.6306 1.3369 2.0207

Coefficients:
            Estimate Std. Error t value Pr(>|t|)
(Intercept)    7.724      6.378   1.211   0.2714
GPA            5.650      1.973   2.863   0.0287 *
---
Signif. codes: 0 ‘***’ 0.001 ‘**’ 0.01 ‘*’ 0.05 ‘.’ 0.1 ‘ ’ 1

Residual standard error: 2.001 on 6 degrees of freedom
Multiple R-squared: 0.5774,    Adjusted R-squared: 0.507
F-statistic: 8.199 on 1 and 6 DF, p-value: 0.02868

1) b1^ = 7.724 , b2^ = 5.65

2) b2^ > 0 , there is positive relation between GPA and ACT.

since p-value of b2^ = 0.0287 < 0.05

we reject the null and conclude that the variable is significant

3)

R^2 = 0.5774

it means that 57.74 % of variability in ACT is explained using this model

4)

predict(model, data.frame(GPA=3), interval= "confidence")
       fit      lwr      upr
1 24.67436 22.66173 26.68699

hence 95 % confidence level is (22.66173,26.68699)

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