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:
- 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.
- 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:
- 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:
- H0: β1 = 0
- 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.