Question

13	Use the following data to answer the questions below
		SAT	Income	GPA
		1651	47000	2.79
		1581	34000	2.97
		1790	90000	3.48
		1626	60000	2.5
		1754	113000	2.92
		1754	71000	3.76
		1706	105000	2.8
		1765	59000	3.26
		1786	50000	3.89
		1686	27000	3.67
		1790	107000	3.31
		1707	109000	3.16
		1804	81000	3.73
		1712	62000	3.21
		1607	72000	2.8
		1738	63000	3.7
		1790	55000	3.86
		1796	64000	3.91
		1547	47000	2.63
		1692	89000	2.98
		1711	42000	3.45
		1689	70000	3.06
		1740	118000	2.88
		1940	113000	3.96

i	What predicts SAT scores better - GPA or Income?
j	Why?

Answer 1

SAT score predict better by Income

1) Because R square blue for that is greater than other i.e. 0.2211 which means that 22.11% of Variability is explained by model where as 14.10% Variability is explained by other model ( GPA) .

2) Also by model significance - SAT & Income model is significant as p value < 0.05 where as SAT & GPA model has insignificant as p value > 0.05 PL??