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# Equation of regression line and correlations

8. U.S. News & World Report publishes the average starting salary and the average GMAT score for MBA graduates at each of the top 80 ranked schools in the country. The data fit the following regression line: Y = 288X - 111,408 where X is the average GMAT score for students at a school and Y is the average starting salary for graduates from that same school. What is the estimated average starting salary for a school with an average GMAT of 600 points?

a. \$58,390
b. \$62,408
c. \$61,392
d. \$71,408

10. Consider the following two variables: X = Length of hospital stay by any given patient (days) Y = Cost of the patient's hospital stay (dollars) What do you expect about the relationship between these variables?

a. Strong positive correlation, but no causation between them.
b. Strong positive correlation, and we expect longer stays to cost more for patients with similar illnesses.
c. Strong positive correlation, and we expect higher costs to cause longer stays for patients with similar illnesses.
d. None of the above.

#### Solution Summary

Interpreting equation of regression line and types of correlations and explanation of each type.

\$2.19