VIU School of Business dean would like to predict the grade point average (GPA) of students in an MBA program based on Graduate Management Admission Test (GMAT) score. A sample of 20 students who have...

VIU School of Business dean would like to predict the grade point average (GPA) of students in an MBA program based on Graduate Management Admission Test (GMAT) score. A sample of 20 students who have completed two years in the program is selected. The results are stored in gpigmat.xls file in the final exam folder in Moodle. (Hint: First, determine which are the independent and dependent variables.)


1) Using the least-squares method, compute the regression coefficients, b0 and b1.


2) Interpret the meaning of the intercept, and the slope, in this problem.


3) Predict the GPA for a student with a GMAT score of 600.


4) Report the coefficient of determination and interpret its meaning in this problem.


The file sporting.xls in the final exam folder in Moodle contains the monthly sales totals from a random sample of 38 stores in a large chain of nationwide sporting goods stores. For each of the 38 stores, demographic information about the customer base is provided. The data set contains the following variables:


Sales—Latest one-month sales total (dollars)
Age—Median age of customer base (years)
HS—Percentage of customer base with a high school diploma
College—Percentage of customer base with a college diploma
Growth—Annual population growth rate of customer base over the past 10 years
Income—Median family income of customer base (dollars)


5) Assuming a linear relationship between sales (your dependent variable) and median family income (your independent variable), compute the regression coefficients, b0 and b1.


6) Interpret the meaning of the Y intercept, b0, and the slope, b1, in this problem.


7) Compute the coefficient of determination, r2, and interpret its meaning.