Formulas: Hypothesis test:

We would like to know if there is . The data on six-year graduation rate (%), student-related expenditure per full-time student, and median SAT score for a random sample of the primarily undergraduate public universities in the US with enrollments between 10,000 and 20,000 were taken from College Results Online, The Education Trust. We would like to know if there is . For a test of a linear relationship, the null hypothesis is usually expressed as: In this context, this means Median SAT Expenditure Grad Rate 1065 7970 49 950 6401 33 1045 6285 37 990 6792 4541 22 970 7186 38 980 7736 39 1080 6382 52 1035 7323 53 1010 6531 41 6216 930 7375 1005 7874 45 1090 6355 57 1085 6261 48

Conjecture: We suspect that increased expenditures can be used to predict graduation rates. H0: b = 0 Where b is the true slope between expenditures and graduation rates. Ha: b > 0

Assumptions : Have an SRS of colleges Since the residual plot is randomly scattered, Expenditures and Grad rates are linear Since the points are evenly spaced across the LSRL on the scatterplot, sy is approximately equal for all values of grad rate Since the boxplot of residual is approximately symmetrical, the responses are approximately normally distributed.

Test statistic: Linear Regression t-test Since the p-value < a, I reject H0. There is sufficient evidence to suggest that expenditures can be used to predict graduation rate.

Give the equation of the line, in the context of the problem.  

What does the R-Sq value tell us?

 Hypothesis Test:

 Conjecture / Hypotheses

 Conditions

 Mechanics

Conclusion