Interpret the Slope and the y-intercept of the Least-Squares Regression Line
-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 .
A) The value has no practical interpretation since a GMAT of 0 is nonsensical and outside the range of the sample data.
B) We expect to predict SALARY to within of its true value using GMAT in a straight-line model.
C) We estimate SALARY to decrease for every 1 -point increase in GMAT.
D) We estimate the base SALARY of graduates of a top business school to be .
Correct Answer:
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