Question: The following table presents the starting annual salaries (SAL) of a group of 30 college graduates who have recently entered the job market, along with their cumulative grade point averages (CGPA).

1. Determine the least-squares estimates of the slope and intercept for the straight-line regression of \(\operatorname{SAL}(Y)\) on CGPA \((X)\). Draw the estimated line on the accompanying scatter diagram, and comment on the fit.
2. Are any of the assumptions for straight-line regression clearly not satisfied in this example?
3. Obtain a \(95 \%\) confidence interval for \(\beta_{1}\).
4. Would you reject the null hypothesis \(H_{0}: \beta_{1}=4000\) at the \(\alpha=0.05\) level?
5. Find and graph \(95 \%\) confidence and prediction bands.
6. Would you reject the hypothesis \(H_{0}: \mu_{Y \mid X}=11,500\) at \(X_{0}=2.75\) ?

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