Week 7 Project Assignment

Week 7 Project Assignment
For these project assignments throughout the course you will need to reference the data in the ROI Excel spreadsheet. Download it here.

· Using the ROI data set:
For each of the two majors:

· Draw the scatter diagram of Y = ‘Annual % ROI’ against X = ‘Cost’.

· Obtain b0 and b1 of the regression equation defined as y ̂ = b0 + b1X and the coefficient of determination (r2) from the Excel regression output.

· Draw the fitted regression line on the scatter diagram.

· Calculate the estimated ‘Annual % ROI’ when the ‘Cost’ (X) is $160,000.

· Test the hypothesis:

o H0: β1 = 0

o Ha: β1 ≠ 0

· Write a paragraph or more on any observations you make about the regression estimates, coefficient of determination, the plots, and the results of your hypothesis tests.

Business Major
School Type Cost 30 Year ROI Annual ROI
Private $222,700.00 $1,786,000.00 7.70%
Private $176,400.00 $1,758,000.00 8.40%
Private $212,200.00 $1,714,000.00 7.80%
Public $125,100.00 $1,535,000.00 9.10%
Private $212,700.00 $1,529,000.00 7.40%
Public $92,910.00 $1,501,000.00 10.10%
Private $214,900.00 $1,485,000.00 7.30%
Private $217,800.00 $1,483,000.00 7.20%
Private $225,600.00 $1,444,000.00 7.00%
Private $217,300.00 $1,442,000.00 7.10%
Private $226,500.00 $1,441,000.00 7.00%
Private $215,500.00 $1,438,000.00 7.20%
Private $223,500.00 $1,428,000.00 7.00%
Private $226,600.00 $1,414,000.00 7.00%
Private $189,300.00 $1,397,000.00 7.50%
Public $89,700.00 $1,382,000.00 9.90%
Public $87,030.00 $1,376,000.00 10.00%
Private $218,200.00 $1,343,000.00 6.90%
Private $229,900.00 $1,339,000.00 6.70%
Private $148,800.00 $1,321,000.00 8.10%
Best College ROI by Majo 2013: Payscale.com

Engineering Major
School Type Cost 30 Year ROI Annual ROI
Private $221,700.00 $2,412,000.00 8.70%
Private $213,000.00 $2,064,000.00 8.30%
Private $230,100.00 $1,949,000.00 7.90%
Private $222,600.00 $1,947,000.00 8.00%
Private $225,800.00 $1,938,000.00 8.00%
Public $87,660.00 $1,937,000.00 11.20%
Private $224,900.00 $1,915,000.00 7.90%
Private $221,600.00 $1,878,000.00 7.90%
Public $125,100.00 $1,854,000.00 9.80%
Private $215,700.00 $1,794,000.00 7.90%
Public $92,530.00 $1,761,000.00 10.60%
Private $217,800.00 $1,752,000.00 7.70%
Public $89,700.00 $1,727,000.00 10.70%
Private $229,600.00 $1,716,000.00 7.50%
Public $101,500.00 $1,703,000.00 10.20%
Public $115,500.00 $1,694,000.00 9.70%
Public $104,500.00 $1,690,000.00 10.10%
Public $69,980.00 $1,685,000.00 11.50%
Private $219,400.00 $1,676,000.00 7.60%
Public $64,930.00 $1,668,000.00 11.70%

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