Question 10.78

10.78 More on predicting college debt.

Refer to the previous exercise. The University of Minnesota has an in-state cost of $14,933 and an average debt of $29,702. Texas A&M University has an in-state cost of $9007 and an average debt of $22,955.

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Figure 10.21: FIGURE 10.21 Minitab output for the regression of average debt (in dollars) at graduation on the in-state cost (in dollars) per year, Exercise 10.77.
  1. Using your answer to part (a) of the previous exercise, what is the predicted average debt for a student at the University of Minnesota?
  2. What is the predicted average debt for Texas A&M University?
  3. Without doing any calculations, would the standard error for the estimated average debt be larger for the University of Minnesota or the Texas A&M University? Explain your answer.