A prediction equation for starting salaries (in $1,000s)and SAT scores was performed using simple linear regression.In the regression printout shown below, what can be said about the level of significance for the overall model? SUMMARY OUTPUT
ANOVA

A)SAT is not a good predictor for starting salary.
B)The significance level for the intercept indicates the model is not valid.
C)The significance level for SAT indicates the slope is equal to zero.
D)The significance level for SAT indicates the slope is not equal to zero.

Question

A prediction equation for starting salaries (in $1,000s)and SAT scores was performed using simple linear regression.In the regression printout shown below, what can be said about the level of significance for the overall model? SUMMARY OUTPUT
 ANOVA
 
A)SAT is not a good predictor for starting salary. 
B)The significance level for the intercept indicates the model is not valid. 
C)The significance level for SAT indicates the slope is equal to zero. 
D)The significance level for SAT indicates the slope is not equal to zero.

Quizplus · Accepted Answer

The significance level for SAT indicates whether or not the slope of the regression line is significantly different from zero. If the significance level is low (typically below 0.05), it indicates that there is a significant relationship between SAT scores and starting salaries. In this case, the answer is D, as the significance level for SAT is not given in the information provided. However, if the significance level for SAT is low, it would indicate that the slope (i.e. the effect of SAT scores on starting salaries) is significantly different from zero, meaning SAT is a good predictor for starting salary.

A Prediction Equation for Starting Salaries (In $1,000s)and SAT Scores