Regression problem

Is an MBA a golden cket? Pursuing an MBA is a major personal investment. Tui on and

expenses associated with business school programs are costly, but the high costs come

with hopes of career advancement and high salaries. A prospec ve MBA student would

like to examine the factors that impact star ng salary upon gradua on and decides to

develop a model that uses program per year tui on as a predictor of star ng salary. Data

were collected for 37 full- me MBA programs offered at private universi es.

a. Construct a sca er plot.

b. Assuming a linear rela onship, use the least-squares method to determine the

regression coefficients b0 and b1.

c. Interpret the meaning of the slope, b1, in this problem.

d. Predict the mean star ng salary upon gradua on for a program that has a per-year

tui on cost of $50,450.

e. What insights do you gain about the rela onship between program per-year tui on and

star ng salary upon gradua on?