Nineteen ninetyfive data from over 1000 colleges published i

Nineteen ninety-five data from over 1,000 colleges published in U.S. News & World Report were used to predict the percent of alumni who donate to a college from the average SAT score of students attending the college. The resulting regression equation was = –29.29 + 0.05(X). This regression indicates that:

for every one-point increase in SAT scores, a college can expect 0.05% fewer alumni to donate.

for every one-point increase in SAT scores, a college can expect 0.05% more of its alumni to donate.

for every one-dollar increase in donations, the college can expect a half-point increase in SAT scores.

most colleges have very high alumni donation rates.

Solution

The regression equation is = –29.29 + 0.05(X) ; slope of the equation is +0.05.

Hence for every one pont increase i.e X = 1, 2 ,3 etc. = - 29.24, - 29.19, - 29.14 i.e. for every one-point increase in SAT scores, a college can expect 0.05% more of its alumni to donate.