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The University MBA program uses the candidates' GMAT scores to predict the candidate's future performance, which is measured by the GPA at the time of graduation. To do this, the program collects GMAT and GPA scores of the MBA students who have already graduated, and run the regression analysis based on the data. The regression model is as follows, GPA=0.037+0.0055*GMAT.
Q1: Please explain the meaning of the two coefficients: 0.037 and 0.0055.
Q2: Suppose in the historical data, the range of the GMAT scores is [368, 665]. If an applicant's GMAT score=500, how can you use the regression model to predict the applicant's GPA in the future? What if the applicant's GMAT score is 300?
Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..
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