Question

Using the data on 4,137 college students, the following equation was estimated by OLS: colgpa_hat = 1.392 - .0135 hsperc...

Using the data on 4,137 college students, the following equation was estimated by OLS: colgpa_hat = 1.392 - .0135 hsperc + .00148 sat where colgpa is measured on a four-point scale, hsperc is the percentile in the high school graduating class (defined so that, for example, means the top 5% of the class), and sat is the combined math and verbal scores on the student achievement test. What is the predicted college GPA when hsperc = 30 and sat = 1,000?

a. 2.813

b. 2.692

c. 2.283

d. 2.467

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The correct answer is (d) 2.467.

Regression is given by : colgpa_hat = 1.392 - .0135 hsperc + .00148 sat

Where colgpa = College GPA , colgpa_hat = Predicted value of college GPA and that is we have to calculate, hsperc = 30 and sat = 1,000

=> colgpa_hat = 1.392 - .0135 hsperc + .00148 sat

= 1.392 - .0135*30 + .00148 *1000

= 2.467

Thus, the predicted college GPA when hsperc = 30 and sat = 1,000 is 2.467

Hence, the correct answer is (d) 2.467.

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