4. The following regression is fitted using variables identified that could be related to tuition charges ($) of a university. TUITION = a+ B ACCEPT + y MSAT + 1 VSAT Where ACCEPT = the percentage of applicants that was accepted by the university, MSAT = Median Math SAT score for the freshman class and VSAT = Median English SAT score for the freshman class. The data was processed using MNITAB and the following is an extract of the output obtained: Predictor Coef StDev Constant -26780 6115 ACCEPT 116.00 37.17 MSAT -4.21 14.12 VSAT 70.85 15.77 т P -4.38 0.000 0.003 -0.30 4.49 0.767 ** S = 2685 R-Sq 69.6% R-Sq (adj) = 67.7% Analysis of Variance Source DF SS MS Regression 3 Residual Error 49 Total 52 808139371 353193051 1161332421 269379790 7208021 F 37.37 Р 0.000 a) Write out the regression equation. b) State the dependent and independent variable(s) c) Fill in the blanks identified by ** and ****. d) Is significant, at the 10% level of significance? [1] [2] [6] [4] e) State one limitation of using the regression equation for predicting the value of the GPA score. [1]

4. The following regression is fitted using variables identified that could be related to tuition charges ($) of a university. TUITION = a+ B ACCEPT + y MSAT + 1 VSAT Where ACCEPT = the percentage of applicants that was accepted by the university, MSAT = Median Math SAT score for the freshman class and VSAT = Median English SAT score for the freshman class. The data was processed using MNITAB and the following is an extract of the output obtained: Predictor Coef StDev Constant -26780 6115 ACCEPT 116.00 37.17 MSAT -4.21 14.12 VSAT 70.85 15.77 т P -4.38 0.000 0.003 -0.30 4.49 0.767 S = 2685 R-Sq 69.6% R-Sq (adj) = 67.7% Analysis of Variance Source DF SS MS Regression 3 Residual Error 49 Total 52 808139371 353193051 1161332421 269379790 7208021 F 37.37 Р 0.000 a) Write out the regression equation. b) State the dependent and independent variable(s) c) Fill in the blanks identified by and ****. d) Is significant, at the 10% level of significance? [1] [2] [6] [4] e) State one limitation of using the regression equation for predicting the value of the GPA score. [1]

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter4: Estimating Demand

Section: Chapter Questions

Problem 9E

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