Question

In: Statistics and Probability

School Type Cost 30 Year ROI Annual ROI School Type Cost 30 Year ROI Annual ROI...

School Type Cost 30 Year ROI Annual ROI School Type Cost 30 Year ROI Annual ROI
Private $222,700.00 $1,786,000.00 7.70% Private $221,700.00 $2,412,000.00 8.70%
Private $176,400.00 $1,758,000.00 8.40% Private $213,000.00 $2,064,000.00 8.30%
Private $212,200.00 $1,714,000.00 7.80% Private $230,100.00 $1,949,000.00 7.90%
Public $125,100.00 $1,535,000.00 9.10% Private $222,600.00 $1,947,000.00 8.00%
Private $212,700.00 $1,529,000.00 7.40% Private $225,800.00 $1,938,000.00 8.00%
Public $92,910.00 $1,501,000.00 10.10% Public $87,660.00 $1,937,000.00 11.20%
Private $214,900.00 $1,485,000.00 7.30% Private $224,900.00 $1,915,000.00 7.90%
Private $217,800.00 $1,483,000.00 7.20% Private $221,600.00 $1,878,000.00 7.90%
Private $225,600.00 $1,444,000.00 7.00% Public $125,100.00 $1,854,000.00 9.80%
Private $217,300.00 $1,442,000.00 7.10% Private $215,700.00 $1,794,000.00 7.90%
Private $226,500.00 $1,441,000.00 7.00% Public $92,530.00 $1,761,000.00 10.60%
Private $215,500.00 $1,438,000.00 7.20% Private $217,800.00 $1,752,000.00 7.70%
Private $223,500.00 $1,428,000.00 7.00% Public $89,700.00 $1,727,000.00 10.70%
Private $226,600.00 $1,414,000.00 7.00% Private $229,600.00 $1,716,000.00 7.50%
Private $189,300.00 $1,397,000.00 7.50% Public $101,500.00 $1,703,000.00 10.20%
Public $89,700.00 $1,382,000.00 9.90% Public $115,500.00 $1,694,000.00 9.70%
Public $87,030.00 $1,376,000.00 10.00% Public $104,500.00 $1,690,000.00 10.10%
Private $218,200.00 $1,343,000.00 6.90% Public $69,980.00 $1,685,000.00 11.50%
Private $229,900.00 $1,339,000.00 6.70% Private $219,400.00 $1,676,000.00 7.60%
Private $148,800.00 $1,321,000.00 8.10% Public $64,930.00 $1,668,000.00 11.70%

 

  1. In a highlighted box, explain how each hypothesis test contributes to the central question of which major would give the better ROI. Why do we need hypothesis testing? Isn't it enough to look at the sample of 20 schools and look at those numbers? What exactly does hypothesis testing do that looking at the numbers in the sample and saying "one is higher than the other" cannot do? This answer is critical to your final project. It demonstrates that you understand why you just can't look at the mean, median, and mode of the spreadsheet and "call it a day
  2. . For Business versus Engineering majors conduct a full, two-sample, full hypothesis test at the 5% significance level (assume the variances are not equal):The average ’30-Year ROI’ for Business majors is less than for Engineering Majors.
    • The mean ‘Cost’ for a college is $160,000.
  3. For each of the 2 majors, conduct a full hypothesis test at the 10% significance level:

Solutions

Expert Solution


Related Solutions

Create a scatter diagram of Y = ‘Annual % ROI’ against X = ‘Cost’. Include the...
Create a scatter diagram of Y = ‘Annual % ROI’ against X = ‘Cost’. Include the trendline, the equation of the trendline, and the coefficient of determination on the graph. Obtain b0 and b1 of the regression equation defined as y ̂ = b0 + b1X. Hint from Dr. Klotz: You can get this right from the trendline. Calculate the estimated ‘Annual % ROI’ when the ‘Cost’ (X) is $160,000. Conduct a full hypothesis test:   You will be in charge....
The national mean annual salary for a school administrator is $90,000 a year. A school official...
The national mean annual salary for a school administrator is $90,000 a year. A school official took a sample of 25 school administrators in the state of Ohio to learn about salaries in that state to see if they differed from the national average. Click on the datafile logo to reference the data. (a) Choose the hypotheses that can be used to determine whether the population mean annual administrator salary in Ohio differs from the national mean of $90,000. H0:...
118. A 30 year project is estimated to cost $35 million dollars and provide annual cash...
118. A 30 year project is estimated to cost $35 million dollars and provide annual cash flows of $5 per year in years 1-5; $4 million per year in years 6-20 and $2 million per year in years 21-30. If the company's required rate of return is 10%, determine the discounted payback for the project.
A company has annual revenues of $5,000,000, fixed cost of $1,500,000, and variable cost of 30%...
A company has annual revenues of $5,000,000, fixed cost of $1,500,000, and variable cost of 30% of annual revenues. A.) What are the expected profits? B.) What is the degree of operating leverage? C.) If revenues are 40% below expectation, what is the percent decrease in profits?
The current cost of graduate school tuition is $18,093 per year. The cost of tuition is...
The current cost of graduate school tuition is $18,093 per year. The cost of tuition is rising at 7% per year. You plan to attend graduate school for 3 years starting 2 years from now. How much do you have to invest today if your savings account earns 3.90% APR compounded annually to just fund your tuition?
The current cost of graduate school tuition is $15,771 per year. The cost of tuition is...
The current cost of graduate school tuition is $15,771 per year. The cost of tuition is rising at 7% per year. You plan to attend graduate school for 3 years starting 3 years from now. How much do you have to invest today if your savings account earns 2.53% APR compounded annually to just fund your tuition?
The current cost of graduate school tuition is $19,203 per year. The cost of tuition is...
The current cost of graduate school tuition is $19,203 per year. The cost of tuition is rising at 6% per year. You plan to attend graduate school for 3 years starting 4 years from now. How much do you have to invest today if your savings account earns 3.95% APR compounded annually to just fund your tuition?
The current cost of graduate school tuition is $18,313 per year. The cost of tuition is...
The current cost of graduate school tuition is $18,313 per year. The cost of tuition is rising at 8% per year. You plan to attend graduate school for 3 years starting 3 years from now. How much do you have to invest today if your savings account earns 4.88% APR compounded annually to just fund your tuition?
The current cost of graduate school tuition is $19,771 per year. The cost of tuition is...
The current cost of graduate school tuition is $19,771 per year. The cost of tuition is rising at 7% per year. You plan to attend graduate school for 3 years starting 2 years from now. How much do you have to invest today if your savings account earns 4.74% APR compounded annually to just fund your tuition?
A certain type of computer costs $1,000, and the annual holding cost is 25% of the...
A certain type of computer costs $1,000, and the annual holding cost is 25% of the value of the item. Annual demand is 10,000 units, and the order cost is $150 per order. (Assume 250 working days per year) ◦D = _______________ ◦S = _______________ ◦H = _______________ ◦Q* = ______________ ◦Total cost = ____________ ◦Expected number of orders per year =_______________ Expected time between orders =
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT