Refer to Table 1 and use Excel to compute the answers to the questions asked. Table 1 contains the ACT scores and the GPA (grade point average) for eight college students. ACT tests were taken by students when they were in high school, to assess their readiness to attend college. GPA are students' grades once in college; GPA is based on a four-point scale and has been rounded to one digit after the decimal. Consider the simple model: GPA = β0 + β1ACT + u.
Using the data from Table 1, the intercept and slope estimates you obtain using OLS are___and____, respectively.
Compute fitted values and residuals for each observation. You find that the sum of the residuals is equal to [sumres]. Compute the coefficient of determination or R-squared of the regression. You find that the percentage of the variation in GPA scores, for these eight students, that is explained by their ACT scores is equal to [R2x100].