ROI data set

Business Finance

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.
0 replies

Leave a Reply

Want to join the discussion?
Feel free to contribute!

Leave a Reply

Your email address will not be published. Required fields are marked *