Question

How do I explain the importance of the intercept?

How do I explain the significance of 'F'?

How do I explain the p-value?

My null hypotheses is that the higher cost average annual cost will result in a higher rate of graduation and salary. Would I reject the hypotheses?

Average Annual CostGradution Ratealary After Attendin 59% School Name Brigham Young University- Idaho5 8,518.00 16,700.00 15,656.00 13,655.00 16,989.00 Clemson Univeristy 81% 52,400.00 Mississippi State Univeris San Francsico State University University of California-Santa Cruz 52% 78% 55% 72% 92% 84% 49,200.00 iversity of North Calolina at Greensbol S s 11,758.00 University of Oregon 15,619.00 29.997.00 12957.00 16,494.00 13,270.00 19,095.00 | 21,727.00 14,682.00 20,166.00 14,164.00 16,340.44 44,800.00 74,000.00 57,700.00 42,800.00 University of Southern California $ niversity of Washington- Seattle Campu S Grand Valley State University Metropolitan State University of Denver S University of South Carolina- Columbia S 73% 65% 75% 80% 56% 67% |$ 44,900.00 49,600.00 52,500.00 57,900.00 47,000.00 48,768.75 Montclair State University lorth Carolina State University at Raleig S Rutgers University- New Brunswick$ University of Nevada- Reno Average - $

Answer 1

Here Graduation rate (GR) and Salary after attending (SA) are the predictor variables and Average annual cost (AAC) is the response variable

The regression equation is AAC = -2843.908 + 2626.545 GR + 0.3572 SA

(a) The intercept is -2843.908 and is the AAC when both GR and SA are 0. The intercept has no practical meaning in the present context.

(b) F (critical) for df = (2, 13) and α = 0.05 is 3.8056

Since the test F value (7.062) > F critical, the result is significant. This means at least one of the two predictor variables has a significant influence on the response variable.

(c) p- value (0.0084) < 0.05, which again means the result is significant. This means at least one of the two predictor variables has a significant influence on the response variable.

(d) The null hypothesis is to be rejected and the alternative hypothesis accepted.