1. Business admissions. An analyst at a business school's admissions office claims to have developed a valid linear model predicting success (measured by starting salary ($) at time of graduation) from a student's undergraduate performance (measured by GPA). Describe how you would check each of the four regression conditions in this context.
2. School rankings. A popular magazine annually pub-Used BMW prices, part 2. Use the advertised prices for BMW 840s given in Exercise 65 to create a linear model for the relationship between a car's Yearand its Price.
a) Find the equation of the regression line.
b) Explain the meaning of the slope of the line.
c) Explain the meaning of the intercept of the line.
d) If you want to sell a 1997 BMW 840, what price seems appropriate?
e) You have a chance to buy one of two cars. They are about the same age and appear to be in equally good condi- tion. Would you rather buy the one with a positive residual or the one with a negative residual? Explain.