Earning Power a College's Job Placement Office Collected Data About $$r = 0.72$$

question 27

Essay

Earning power A college's job placement office collected data about students' GPAs and
the salaries they earned in their first jobs after graduation. The mean GPA was 2.9 with a
standard deviation of 0.4. Starting salaries had a mean of $47,200 with a SD of $8500. The
correlation between the two variables was $$r = 0.72$$
The association appeared to be linear in
the scatterplot. (Show work)
a. Write an equation of the model that can predict salary based on GPA.
b. Do you think these predictions will be reliable? Explain.
c. Your brother just graduated from that college with a GPA of 3.30. He tells you that based
on this model the residual for his pay is -$1880. What salary is he earning?

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Definitions:

Bonus

Extra payment awarded to employees as an incentive or reward beyond their normal compensation.

Net Assets

The total assets of an entity minus its total liabilities.

Capital Account

Part of a country's balance of payments, it records the net change in ownership of national assets.

Interest

The cost of borrowing money or the return on investment for savings and loans, expressed as a percentage.