A Law School Administrator Was Interested in Whether a Student's

question 25

Short Answer

A law school administrator was interested in whether a student's score on the entrance exam can be used to predict a student's grade point average (GPA) after one year of law school. The administrator took a random sample of 15 students and computed the following summary information, where x = entrance exam score and y = GPA after one year: and Find the correlation between the entrance exam score and the grade point average after one year of law school.
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Interpret the correlation coefficient found in part (a).
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Find the best fitting line relating grade point average after on year of law school and score on the entrance exam.
y = ______________
If a student scored 91 on the entrance exam, what would you predict the student's grade point average to be after one year of law school?
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Definitions:

Option Exercise

The act of utilizing the right, but not the obligation, to buy or sell an underlying security at a pre-determined price within a specified time frame.

Expiration Date

The last day on which an options or futures contract is valid and can be exercised.

Striking Price

Also known as the exercise price, it is the price at which the holder of an option can buy (call) or sell (put) the underlying asset.

Option Contract

A financial contract giving the buyer the right, but not the obligation, to buy or sell an asset at a set price on or before a certain date.