So what things cause a student to take on debt? Given the data available, it see

Question

So what things cause a student to take on debt? Given the data available, it seems that "need" (as defined by the government) would be one measure that would lead a student to take on debt. One potential measure of need for institutions would be the percent of student receiving Pell Grants (college grants for students with significant "need"). Using the data from on need and the data on average student loan debt,

3557551.236

2053.53

a.  Using the values for BOTH the correlation coefficient and the coefficient of determination, explain to whether or not there seems to be a relationship between the average amount of student loan debt and the percentage of students with Pell Grants.  NOcalculations here. Just EXPLAIN

SUMMARY OUTPUT Regression Statistics Multiple R 0.08382 R Square 0.00703 Adjusted R Square -0.02844 Standard Error 4237.485 Observations 30 ANOVA df SS MS F Regression 1

3557551.236

3557551.236 0.1981 Residual 28 502775891.46 17956281.8 Total 29 506333442.7 Coefficients Standard Error t Stat P-value Intercept 30741.20

2053.53

14.970 6.862E-15 PellGrants 2648.68 5950.63 0.445 0.65967

Explanation / Answer

correlation coefficient = 0.00703

There is poor or very weak correlation between average amount student loan debt and Pell Grants need.

The correlation is positive but not significant.

coefficient of determination=0.08382

ie only 8.38% of variance or information in student loan debt is explained by the regression model or by the independent variable Pell Grants need.

From above, there seems to be no relationship between the average amount of student loan debt and the percentage of students with Pell Grants.

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