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Out-of-state tuition and fees at the top graduate schools of business can be very expensive, but the starting salary and bonus paid to graduates from many of these schools can be substantial. The following data show the out-of-state tuition and fees (rounded to the nearest $1000) and the average starting salary and bonus paid to recent graduates (rounded to the nearest $1000) for a sample of 20 graduate schools of business (U.S. News & World Report 2009 Edition America's Best Graduate Schools).
.a. Develop a scatter diagram with salary and bonus as the dependent variable.
b. Does there appear to be any relationship between these variables? Explain.
c. Develop an estimated regression equation that can be used to predict the starting salary and bonus paid to graduates given the cost of out-of-state tuition and fees at the school.
d. Test for a significant relationship at the .05 level of significance. What is your conclusion?
e. Did the estimated regression equation provide a good fit? Explain.
f. Suppose that we randomly select a recent graduate of the University of Virginia graduate school of business. The school has an out-of-state tuition and fees of $43,000. Estimate the starting salary and bonus for this graduate.
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