# Significance of Correlation & Regression Analysis

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Use the Student_Data.xls file to solve the following.

Problem 1)

Does undergraduate success predict graduate success? While most people complete their bachelor's degree during the daytime while taking multiple classes and not working full-time, those getting an MBA are typically taking one or two courses at a time, in the evening or on weekends, and while working and even supporting a family. Yet one would expect those who perform better in their bachelor's degree will perform better in their master's. Using a significance level of .05, test whether there is a correlation between the BS GPA and the MBA GPA. Also, answer the following:

a) What is the correlation coefficient and how strong is it?

b) What is the best fit regression equation that can predict the MBA GPA from the BS GPA?

c) What would you expect a student's MBA GPA to be if he/she had a 3.50 BS GPA?

Problem 2)

Does studying really help with grades? Using a significance level of .05, test whether there is a correlation between the Hours Studying and the BS GPA. Also, answer the following:

a) What is the correlation coefficient and how strong is it?

b) What is the best fit regression equation that can predict the BS GPA from the Hours Studying?

c) What would you expect a student's BS GPA to be if he/she studies 8 hours per week?

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##### Solution Summary

The solution provides step by step method for the calculation of test statistic for significance of correlation coefficient and regression analysis. Formula for the calculation and Interpretations of the results are also included.

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