In: Statistics and Probability
School Type | Cost | 30 Year ROI | Annual ROI |
Private | $222,700.00 | $1,786,000.00 | 7.70% |
Private | $176,400.00 | $1,758,000.00 | 8.40% |
Private | $212,200.00 | $1,714,000.00 | 7.80% |
Public | $125,100.00 | $1,535,000.00 | 9.10% |
Private | $212,700.00 | $1,529,000.00 | 7.40% |
Public | $92,910.00 | $1,501,000.00 | 10.10% |
Private | $214,900.00 | $1,485,000.00 | 7.30% |
Private | $217,800.00 | $1,483,000.00 | 7.20% |
Private | $225,600.00 | $1,444,000.00 | 7.00% |
Private | $217,300.00 | $1,442,000.00 | 7.10% |
Private | $226,500.00 | $1,441,000.00 | 7.00% |
Private | $215,500.00 | $1,438,000.00 | 7.20% |
Private | $223,500.00 | $1,428,000.00 | 7.00% |
Private | $226,600.00 | $1,414,000.00 | 7.00% |
Private | $189,300.00 | $1,397,000.00 | 7.50% |
Public | $89,700.00 | $1,382,000.00 | 9.90% |
Public | $87,030.00 | $1,376,000.00 | 10.00% |
Private | $218,200.00 | $1,343,000.00 | 6.90% |
Private | $229,900.00 | $1,339,000.00 | 6.70% |
Private | $148,800.00 | $1,321,000.00 | 8.10% |
Sol:
In excel got to insert scatterchart
From scatterplot we get
from:linear
strength:strong
Direction:negative
Solution2:
In excel go to data >data analysis>regression
You will get
SUMMARY OUTPUT | ||||||
Regression Statistics | ||||||
Multiple R | 0.970065 | |||||
R Square | 0.941026 | |||||
Adjusted R Square | 0.93775 | |||||
Standard Error | 0.274342 | |||||
Observations | 20 | |||||
ANOVA | ||||||
df | SS | MS | F | Significance F | ||
Regression | 1 | 21.61726 | 21.61726 | 287.2207 | 1.64E-12 | |
Residual | 18 | 1.354744 | 0.075264 | |||
Total | 19 | 22.972 | ||||
Coefficients | Standard Error | t Stat | P-value | Lower 95% | Upper 95% | |
Intercept | 11.80399 | 0.242949 | 48.58621 | 1.51E-20 | 11.29357 | 12.31441 |
Cost | -2.1E-05 | 1.25E-06 | -16.9476 | 1.64E-12 | -2.4E-05 | -1.9E-05 |
you will get
b0= y intrcept=11.80399
b1=slope=-2.1E-05=-0.000021
Regression equation is
Annual ROI=11.80399-0.000021*Cost
Solution3:
we have
Regression equation is
Annual ROI=11.80399-0.000021*Cost
=11.80399-0.000021*160000
=8.44399
=8.44%
ANSWER:8.44%