John is an undergraduate business major studying at a local university.He wonders how his grade point average (GPA)can affect his future earnings.He asks five recent business school graduates information on their GPA and income (in $1,000s).The following table shows this information. 
a.Construct a scatterplot and verify that estimating a simple linear regression is appropriate in this case.
b.Calculate b0 and b1.What is the sample regression equation?
c.Interpret the coefficient for GPA.
d.Find the predicted income earned if a GPA equals 3.0,3.3,and 3.6.
Definitions:
Straight-Line Depreciation
A method of calculating the depreciation of an asset, where the asset's cost is evenly spread over its useful life.
Yearly Depreciation
The accounting process of allocating the cost of a tangible asset over its useful life, reflecting the asset's consumption, wear, and tear over time.
Discount Rate
The interest rate used to discount future cash flows of a financial instrument back to their present value, thus helping to determine the potential value of an investment.
Straight-Line Depreciation
A method of allocating an asset's cost evenly throughout its useful life.
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