BADM 701 ASSIGNMENT 2016

ASSIGNMENT: Read the scenario below & answer the questions that follow. The data is in the attachment.

As described in the textbook, “Each year, the Wall Street Journal and Harris Interactive track the opinions and experiences of college recruiters for large corporations and summarize the results in the Business School Survey. One of these surveys included rankings of 76 business schools. Survey data for the top 10 business school are given.” Consider a scenario where you are having a conversation with a friend about how to assess which graduate school is the best. From your friend’s perspective, the purpose of going to a “good” business program is to earn a high salary upon graduation. Your friend believes the amount of tuition paid is an indicator of the quality of a program, since only the best schools can expect to find enough students willing to pay a high tuition. Your friend argues that schools with the highest tuitions will have the highest starting average salaries for its students.

Complete a regression analysis for the hypothesized relationship to determine whether there is evidence to support your friend’s argument.

A. Identify the dependent variable and independent variable for your analysis.

B. Write out the equation that represents the population regression equation for the scenario described above and explain why your equation indicates a positive or negative relationship between these variables.

C. Use the “Microsoft Excel Data Analysis Toolpak” to determine the regression coefficients for the relationship and write out the final estimated regression equation.

D. Give a practical interpretation of the slope of the least squares line. Over what range of x-values is the interpretation meaningful? Does the estimated slope support the relationship between the two variables you hypothesized? Explain.

E. Perform a hypothesis test of the slope coefficient. Use the 6-step hypothesis testing approach and identify each step.

F. Report and interpret the R²for this regression.

G. Explain whether there is evidence to support the student’s argument you supported.Prepare aBRIEF(1-2 paragraph) explanation of the results of your analysis. You must specifically reference the parts of your regression analysis that support your conclusion including analyzing the residuals to determine whether there are any apparent violations of the regression assumptions.