An ardent fan of television game shows has observed that, in general, the more educated the contestant, the less money he or she wins.

 

 

An ardent fan of television game shows has observed that, in general, the more educated the contestant, the less money he or she wins. To test her belief, she gathers data about the last eight winners of her favourite game show. She records their winnings in dollars and their years of education and performs a simple linear regression, with the Excel output provided. SUMMARY OUTPUT Regression Statistics Multiple R R Square Adjusted R Square Standard Error Observations ANOVA Regression Residual Total Intercept Years of education 0.9583798 0.9184918 0.9049071 59.395099 df 8 MS 1 238520.8333 238520.8 67.6122047 21166.66667 3527.778 259687.5 6 7 SS F Coefficients Standard Error 1 Stat P-value 1735 147.8926037 11.73149 2.3148E-05 -89.16667 10.84401183 -8.222664 0.00017466 Significance F 0.00017466 Lower 95% 1373.11984 -115.70101 Upper 95% 2096.8802 -62.63233 Using the information from the picture answer the following questions. Q1.Determine the least squares regression line. And interpret the value of the slope of the regression line. [10 marks] Q2. Determine the standard error of estimate, and describe what this statistic tells you about the regression line. (5 marks) Q3. Interpret the coefficient of correlation.