(Situation P) Below are the results of a survey of America's best graduate and professional schools. The top 25 business schools, as determined by reputation, student selectivity, placement success, and graduation rate, are listed in the table.
For each school, three variables were measured: (1) GMAT score for the typical incoming student; (2) student acceptance rate (percentage accepted of all students who applied); and (3) starting salary of the typical graduating student.

\begin{array} { l l l l r } & \text { School } & \text { GMAT } & \text { Acc. Rate } & \text { Salary } \\\hline\text { 1. } & \text { Harvard } & 644 & 15.0 \% & \$ 63,000 \\2 . & \text { Stanford } & 665 & 10.2 & 60,000 \\3 . & \text { Penn } & 644 & 19.4 & 55,000 \\4 . & \text { Northwestern } & 640 & 22.6 & 54,000 \\\text { 5. } & \text { MIT } & 650 & 21.3 & 57,000 \\6 . & \text { Chicago } & 632 & 30.0 & 55,269 \\7 . & \text { Duke } & 630 & 18.2 & 53,300 \\\text { 8. } & \text { Dartmouth } & 649 & 13.4 & 52,000 \\9 . & \text { Virginia } & 630 & 23.0 & 55,269 \\\text { 10. } & \text { Michigan } & 620 & 32.4 & 53.300 \\\text { 11. } & \text { Columbia } & 635 & 37.1 & 52,000 \\\text { 12. } & \text { Cornell } & 648 & 14.9 & 50,700 \\\text { 13. } & \text { CMU } & 630 & 31.2 & 52,050 \\\text { 14. } & \text { UNC } & 625 & 15.4 & 50,800 \\\text { 15. } & \text { Cal-Berkeley } & 634 & 24.7 & 50,000 \\\text { 16. } & \text { UCLA } & 640 & 20.7 & 51,494 \\\text { 17. } & \text { Texas } & 612 & 28.1 & 43,985 \\\text { 18. } & \text { Indiana } & 600 & 29.0 & 44,119 \\\text { 19. } & \text { NYU } & 610 & 35.0 & 53,161 \\\text { 20. } & \text { Purdue } & 595 & 26.8 & 43,500 \\\text { 21. } & \text { USC } & 610 & 31.9 & 49,080 \\\text { 22. } & \text { Pittsburgh } & 605 & 33.0 & 43,500 \\\text { 23. } & \text { Georgetown } & 617 & 31.7 & 45,156 \\24 . & \text { Maryland } & 593 & 28.1 & 42,925 \\25 . & \text { Rochester } & 605 & 35.9 & 44,499\end{array}

The 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. A simple linear regression of SALARY versus GMAT using the 25 data points in the table are shown below.

\beta _ { 0 } = - 92040 \quad \hat { \beta } _ { 1 } = 228 \quad s = 3213 \quad r ^ { 2 } = .66 \quad r = .81 \quad \mathrm { df } = 23 \quad t = 6.67

-A 95% prediction interval for SALARY when GMAT = 600 is ($37,915, $51,948). Interpret this interval for the situation above.
A) We are 95% confident that the SALARY of a top business school graduate will fall between $37,915 and $51,984.
B) We are 95% confident that the increase in SALARY for a 600-point increase in GMAT will fall between $37,915 and $51,984.
C) We are 95% confident that the SALARY of a top business school graduate with a GMAT of 600 will fall between $37,915 and $51,984.
D) We are 95% confident that the mean SALARY of all top business school graduates with GMATs of 600 will fall between $37,915 and $51,984.

Suppose You Fit a Least Squares Line to 22 Data s2s ^ { 2 }s2

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Suppose You Fit a Least Squares Line to 22 Data $s ^ { 2 }$

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