SCENARIO 12-8
It Is Believed That GPA (Grade Point Average

SCENARIO 12-8
It is believed that GPA (grade point average, based on a four point scale) should have a positive linear relationship with ACT scores.Given below is the Excel output for predicting GPA using ACT scores based a data set of 8 randomly chosen students from a Big-Ten university.
Regressing GPA on ACT $$\begin{array}{l}\begin{array} { l r } \hline { \text { Regression Statistics } } \\\hline \text { Multiple R } & 0.7598 \\\text { R Square } & 0.5774 \\\text { Adjusted R Square } & 0.5069 \\\text { Standard Error } & 0.2691 \\\text { Qbservations } & 8 \\\hline\end{array}\\\end{array}$$
ANOVA
$\begin{array}{lrrrcc} \hline & \text { df } & \text { SS } & \text { MS } & \text { F } & \text { Significance.F } \\\hline\text { Regression } & 1 & 0.5940&0.5940&8.1986&0.0286 \\\text { Error } & 6 & 0.4347&0.0724\\\text { Total } & 7 &1.0287\\\hline\end{array}$
$$\begin{array}{l}\begin{array} { l c r r r r r } \hline & \text { Coefficients } & \text { Standard Error } & t \text { Stat } & P \text {-value } & \text { Lower 95\% } & \text { Upper 95\% } \\\hline \text { Intercept } & 0.5681 & 0.9284 & 0.6119 & 0.5630 & - 1.7036 & 2.8398 \\\text { ACT } & 0.1021 & 0.0356 & 2.8633 & 0.0286 & 0.0148 & 0.1895 \\\hline\end{array}\end{array}$$
-Referring to Scenario 12-8, what are the decision and conclusion on testing whether there is any linear relationship at 1% level of significance between GPA and ACT scores?

A) Do not reject the null hypothesis; hence there is insufficient evidence to show that ACT scores and GPA are linearly related.
B) Reject the null hypothesis; hence there is insufficient evidence to show that ACT scores and GPA are linearly related.
C) Do not reject the null hypothesis; hence there is sufficient evidence to show that ACT scores and GPA are linearly related.
D) Reject the null hypothesis; hence there is sufficient evidence to show that ACT scores and GPA are linearly related.