Project Assignment
For these project assignments throughout the course you will need to reference the data in the ROI Excel spreadsheet.
Using the ROI data set:
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 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 ‘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.
Sample Solution