The Following Regression Equation Was Found for a Sample of College

question 37

Multiple Choice

The following regression equation was found for a sample of college students. predicted happiness = 32.8 GPA + 17.3 × pocket money + 7.4
Which of the following can be concluded?

• A) The correlation between pocket money and happiness is larger than the correlation between GPA and happiness.
• B) GPA is less useful than pocket money in predicting happiness.
• C) For students with no pocket money, a one-unit increase in GPA will increase the value of predicted happiness by 32.8 units.
• D) The r-squared value for GPA must be greater than the r-squared value for pocket money.

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Definitions:

Interest Rates

The cost of borrowing money or the return on investing, typically expressed as a percentage of the principal, and set by central banks or determined by the market.

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The capital reserves held by a bank or financial institution in excess of what is required by regulators, creditors, or internal controls.

Actual Reserves

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Reserve Requirement

A regulation set by central banks requiring commercial banks to hold a certain proportion of their deposits as reserves.