BUSINESS STATISTICS

Week 7 Project

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:

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:

5. H0: β1 = 0

5. 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.