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SCENARIO 17-8
the Superintendent of a School District Wanted to Predict

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SCENARIO 17-8
The superintendent of a school district wanted to predict the percentage of students passing a sixth-
grade proficiency test. She obtained the data on percentage of students passing the proficiency test
(% Passing), daily mean of the percentage of students attending class (% Attendance), mean teacher
salary in dollars (Salaries), and instructional spending per pupil in dollars (Spending) of 47 schools in
the state. Following is the multiple regression output with Y=%Y = \% Passing as the dependent variable, X1=%X _ { 1 } = \% Attendance, X2=X _ { 2 } = Salaries and X3=X _ { 3 } = Spending:

 Regression Statistics  Multiple R 0.7930 R Square 0.6288 Adjusted R 0.6029 Square  Standard 10.4570 Error  Observations 47\begin{array}{lr}\hline{\text { Regression Statistics }} \\\hline \text { Multiple R } & 0.7930 \\\text { R Square } & 0.6288 \\\text { Adjusted R } & 0.6029 \\\text { Square } & \\\text { Standard } & 10.4570 \\\text { Error } & \\\text { Observations } & 47 \\\hline\end{array}

ANOVA
 SCENARIO 17-8 The superintendent of a school district wanted to predict the percentage of students passing a sixth- grade proficiency test. She obtained the data on percentage of students passing the proficiency test (% Passing), daily mean of the percentage of students attending class (% Attendance), mean teacher salary in dollars (Salaries), and instructional spending per pupil in dollars (Spending) of 47 schools in the state. Following is the multiple regression output with  Y = \%  Passing as the dependent variable,  X _ { 1 } = \%  Attendance,  X _ { 2 } =  Salaries and  X _ { 3 } =  Spending:   \begin{array}{lr} \hline{\text { Regression Statistics }} \\ \hline \text { Multiple R } & 0.7930 \\ \text { R Square } & 0.6288 \\ \text { Adjusted R } & 0.6029 \\ \text { Square } & \\ \text { Standard } & 10.4570 \\ \text { Error } & \\ \text { Observations } & 47 \\ \hline \end{array}    ANOVA     \begin{array}{lrrrrrr} \hline & \text { Coefficients } & \begin{array}{c} \text { Standard } \\ \text { Error } \end{array} & \text { t Stat } & \text { P-value } & \text { Lower 95\% } & \text { Upper 95\% } \\ \hline \text { Intercept } & -753.4225 & 101.1149 & -7.4511 & 0.0000 & -957.3401 & -549.5050 \\ \text { \% Attendance } & 8.5014 & 1.0771 & 7.8929 & 0.0000 & 6.3292 & 10.6735 \\ \text { Salary } & 0.000000685 & 0.0006 & 0.0011 & 0.9991 & -0.0013 & 0.0013 \\ \text { Spending } & 0.0060 & 0.0046 & 1.2879 & 0.2047 & -0.0034 & 0.0153 \\ \hline \end{array}  -Referring to Scenario 17-8, there is sufficient evidence that the percentage of students passing the proficiency test depends on all of the explanatory variables at a 5% level of significance.

 Coefficients  Standard  Error  t Stat  P-value  Lower 95%  Upper 95%  Intercept 753.4225101.11497.45110.0000957.3401549.5050 % Attendance 8.50141.07717.89290.00006.329210.6735 Salary 0.0000006850.00060.00110.99910.00130.0013 Spending 0.00600.00461.28790.20470.00340.0153\begin{array}{lrrrrrr}\hline & \text { Coefficients } & \begin{array}{c}\text { Standard } \\\text { Error }\end{array} & \text { t Stat } & \text { P-value } & \text { Lower 95\% } & \text { Upper 95\% } \\\hline \text { Intercept } & -753.4225 & 101.1149 & -7.4511 & 0.0000 & -957.3401 & -549.5050 \\\text { \% Attendance } & 8.5014 & 1.0771 & 7.8929 & 0.0000 & 6.3292 & 10.6735 \\\text { Salary } & 0.000000685 & 0.0006 & 0.0011 & 0.9991 & -0.0013 & 0.0013 \\\text { Spending } & 0.0060 & 0.0046 & 1.2879 & 0.2047 & -0.0034 & 0.0153 \\\hline\end{array}
-Referring to Scenario 17-8, there is sufficient evidence that the percentage of
students passing the proficiency test depends on all of the explanatory variables at a 5% level of
significance.


Definitions:

Future Cash Flows

The anticipated receivable or payable cash amounts of a company, used for investment analysis and financial planning.

Investor

An individual or institution that allocates capital with the expectation of receiving financial returns.

Time Periods

Distinct intervals of time used for financial reporting, planning, and forecasting, which can range from short-term to long-term durations.

Present Value

Refers to the current worth of a future sum of money or stream of cash flows given a specified rate of return.

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