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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

· 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.