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Piyachat Dobbs 15760087 10/08/15: 2.2 The Following Table Contains The ACT Scores and The GPA (Grade Point Average)

This document analyzes the relationship between students' ACT scores and GPAs using a linear regression model. It finds that ACT scores have a statistically significant positive relationship with GPA, with each one-point increase in ACT score associated with a 0.102 point increase in GPA on average. The model explains 57.74% of the variation in GPA. An example predicts that a student with an ACT score of 20 would have an expected GPA of 2.6.

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243 views3 pages

Piyachat Dobbs 15760087 10/08/15: 2.2 The Following Table Contains The ACT Scores and The GPA (Grade Point Average)

This document analyzes the relationship between students' ACT scores and GPAs using a linear regression model. It finds that ACT scores have a statistically significant positive relationship with GPA, with each one-point increase in ACT score associated with a 0.102 point increase in GPA on average. The model explains 57.74% of the variation in GPA. An example predicts that a student with an ACT score of 20 would have an expected GPA of 2.6.

Uploaded by

Hải Phương
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Piyachat Dobbs

15760087
10/08/15
Problems
2.2 The following table contains the ACT scores and the GPA (grade point average)

Answers:
1.
. reg GPA ACT

Source |
SS
df
MS
Number of obs =
8
-------------+-----------------------------F( 1, 6) = 8.20
Model | .594024725 1 .594024725
Prob > F
= 0.0287
Residual | .434725275 6 .072454212
R-squared = 0.5774
-------------+-----------------------------Adj R-squared = 0.5070
Total | 1.02875 7 .146964286
Root MSE = .26917
-----------------------------------------------------------------------------GPA | Coef. Std. Err. t P>|t| [95% Conf. Interval]
-------------+---------------------------------------------------------------ACT | .1021978 .035692 2.86 0.029 .0148626 .189533
_cons | .5681319 .9284214 0.61 0.563 -1.703633 2.839897
-----------------------------------------------------------------------------

GPA^ = 0.568+0.102 ACT

Both GPA and ACT are positives, which mean an increase in ACT will also increases in
GPA.

The intercept does not have a useful interpretation because it is saying that if the students
zero on the ACT, the students expected GPA is 0.568, however, under some
circumstances that students received zero on their tests, but it does not mean their GPA
will have to be 0.568. For example, the student might has a GPA higher than 0.568, but
he/she did not take the exam and received zero on the ACT.

If the ACT scores increased by 5 points, then the predicted GPA increases is 0.51
(0.102*5=0.51)

2.
Studen
t
1
2
3
4
5
6
7
8

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

Fitted
Value
2.71
3.02
3.23
3.33
3.53
3.12
3.12
3.63
Sum

^0

0.568

Residual
s
0.09
0.38
-0.23
0.17
0.07
-0.12
-0.42
0.07
0.00000
0

^1

0.102

3. GPA^ = 0.568 + (0.102*20) = 2.6


4. R-squared measures how well the independent variable (ACT) explains in the dependent
variable (GPA), and in this model the r-squared is 0.5774 which mean 57.74% of the GPA
explained in ACT, and about 42.26% are unobservable factors.

2.9 In the linear consumption function

Answers
1.

The intercept in this equation is (B^0= -124.84), which is saying that the family with no
income has a predicted consumption of $-124.84, even though the intercept has a
negative sign, however, in reality if we have zero income, but we still do need to
consume and spend money anyway, therefore, the consumption would still be positive.

2. -124.84+(0.853*30,000)= 25,465.16

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