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 â€˜Costâ€™ 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 â€™30-Year ROIâ€™ 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 = â€˜Annual % ROIâ€™ against X = â€˜Costâ€™.
- Obtain b0 and b1 of the regression equation defined as y Ì‚ = 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 â€˜Annual % ROIâ€™ when the â€˜Costâ€™ (X) is $160,000.
- Test the hypothesis:
- H0: Î²1 = 0
- Ha: Î²1 â‰ 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.