roi project

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Project Week 7

Using the ROI data set:

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 Ì‚ = 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
  6. 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.

Data attached

 
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