When Predicting a Student's GPA on the Basis of the Verbal

question 3

Multiple Choice

When predicting a student's GPA on the basis of the Verbal SAT score, the regression line was equal to .01X + .10. This means that there was

• A) a .01 decrease in GPA for each point increase in SAT
• B) a .10 increase in GPA for each point increase in SAT
• C) a predicted GPA of .10 when the SAT score was at its minimum value
• D) a predicted GPA of .01 when the SAT score was at its minimum value

---

Definitions:

Compounded Annually

Describes the calculation of interest on an investment whereby the interest earned each year is added to the principal sum, leading to interest being earned on interest from the subsequent year onwards.

Monthly Compounded

Calculation of interest on the initial principal, which also includes all of the accumulated interest from previous periods on a deposit or loan, compounded every month.

RRSP

Registered Retirement Savings Plan, a Canadian account for holding savings and investment assets, with tax benefits.

Canadian Equity

Investments in stocks or shares of Canadian companies, representing ownership and a claim on part of the company's assets and earnings.