ROI data set

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For these project assignments throughout the course you will need to reference the data in the ROI Excel spreadheet. Download it here.

Using the ROI data set:

  1. For each of the 2 majors test the hypothesis at the 5% significance level:
    • The mean ‘Cost’ for a college is $160,000. Be sure to interpret your results.
  2. For Business versus Engineering majors conduct a two sample test of the hypothesis at the 10% significance level (assume the variances are not equal):
    • The average ’30-Year ROI’ for Business majors is less than for Engineering Majors. Be sure to interpret your results.

    For each of the two majors:

    1. Draw the scatter diagram of Y = ‘Annual % ROI’ against X = ‘Cost’.
    2. Obtain b0 and b1 of the regression equation defined as y ̂ = b0 + b1X and the coefficient of determination (r2) from the Excel regression output.
    3. Draw the fitted regression line on the scatter diagram.
    4. Calculate the estimated ‘Annual % ROI’ when the ‘Cost’ (X) is $160,000.
    5. Test the hypothesis:
      • H0: β1 = 0
      • Ha: β1 ≠ 0
    6. 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.