6. Formulas:
Hypothesis test:

7. We would like to know if there is .
The data on six-year graduation rate (%), student-related expenditure per full-time student, and median SAT score for a random sample of the primarily undergraduate public universities in the US with enrollments between 10,000 and 20,000 were taken from College Results Online, The Education Trust.
We would like to know if there is .
For a test of a linear relationship, the null hypothesis is usually expressed as:
In this context, this means
Median SAT
Expenditure
Grad Rate
1065
7970 49
950
6401 33
1045
6285 37
990
6792
4541 22
970
7186 38
980
7736 39
1080
6382 52
1035
7323 53
1010
6531 41
6216
930
7375
1005
7874 45
1090
6355 57
1085
6261 48

8. Conjecture:
We suspect that increased expenditures can be used to predict graduation rates.
H0: b = 0 Where b is the true slope between expenditures and graduation rates.
Ha: b > 0

9. Assumptions :
Have an SRS of colleges
Since the residual plot is randomly scattered, Expenditures and Grad rates are linear
Since the points are evenly spaced across the LSRL on the scatterplot, sy is approximately equal for all values of grad rate
Since the boxplot of residual is approximately symmetrical, the responses are approximately normally distributed.

10. Test statistic: Linear Regression t-test
Since the p-value < a, I reject H0. There is sufficient evidence to suggest that expenditures can be used to predict graduation rate.

11. Give the equation of the line, in the context of the problem.  

12. What does the R-Sq value tell us?

13.  Hypothesis Test:

14.  Conjecture / Hypotheses

15.  Conditions

16.  Mechanics

17. Conclusion