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 shown below.
-Give a practical interpretation of = 228.
A) We expect to predict SALARY to within 2(228) = $456 of its true value using GMAT in a straight-line model.
B) The value has no practical interpretation since a GMAT of 0 is nonsensical and outside the range of the sample data.
C) We estimate SALARY to increase $228 for every 1-point increase in GMAT.
D) We estimate GMAT to increase 228 points for every $1 increase in SALARY.

Question

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 shown below.  
-Give a practical interpretation of  = 228.
A) We expect to predict SALARY to within 2(228) = $456 of its true value using GMAT in a straight-line model. 
B) The value has no practical interpretation since a GMAT of 0 is nonsensical and outside the range of the sample data. 
C) We estimate SALARY to increase $228 for every 1-point increase in GMAT. 
D) We estimate GMAT to increase 228 points for every $1 increase in SALARY.

Quizplus · Accepted Answer

The Answer of 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 shown below.  
-Give a practical interpretation of  = 228.
A) We expect to predict SALARY to within 2(228) = $456 of its true value using GMAT in a straight-line model. 
B) The value has no practical interpretation since a GMAT of 0 is nonsensical and outside the range of the sample data. 
C) We estimate SALARY to increase $228 for every 1-point increase in GMAT. 
D) We estimate GMAT to increase 228 points for every $1 increase in SALARY.

Each Year a Nationally Recognized Publication Conducts Its "Survey of America's