The file P02_10.xlsx contains midterm and final exam scores for 96 students in a corporate finance course. Each row contains the two exam scores for a given student, so you might expect them to be positively correlated.
a. Create a scatter plot of the final exam score (Y) versus the midterm score (X). Based on the visual evidence, would you say that the scores for the two exams are strongly related? Is the relationship a linear one?
b. Superimpose a trend line on the scatter plot, and use the option to display the equation and the R2 value. What does this equation indicate in terms of predicting a student’s final exam score from his or her midterm score? Be specific.
c. Run a regression to confirm the trend-line equation from part b. What does the standard error of estimate say about the accuracy of the prediction requested in part b?