It is generally believed that the wealthier a student’s family, the higher the student’s Scholastic Aptitude Test (SAT) score. Another commonly used predictor for SAT scores is the student’s grade point average (GPA). Consider the following portion of data collected on 24 students. 

a. Estimate three models: 

(i) SAT = β₀ + β₁Income + ɛ, 

(ii) SAT = β₀ + β₁GPA + ɛ,  

(iii) SAT = β₀ + β₁Income + β₂GPA + ɛ. 

b. Use goodness-of-fit measures to select the best-fitting model. 

c. Use the preferred model to predict SAT given the mean value of the predictor variable(s).

Transcribed Image Text:

SAT 1651 1581 ⠀ 1940 Income 47000 34000 I 113000 GPA 2.79 2.97 ⠀ 3.96