1. Out-of-state tuition and fees at the top graduate schools of business can be very expensive, but the starting salary and bonus paid to graduates from many of these schools can be substantial. The following data show the out-of-state tuition and fees (rounded to the nearest $1,000) and the average starting salary and bonus paid to recent graduates (rounded to the nearest $1,000) for a sample of 20 graduate schools of business (U.S. News & World Report 2009 Edition America's Best Graduate Schools). Data is shared with "BusinessSchools" data file.
a. Develop a scatter diagram with salary and bonus as the dependent variable.
b. Does there appear to be any relationship between these variables? Explain.
c. Develop an estimated regression equation that can be used to predict the starting salary and bonus paid to graduates given the cost of out-of-state tuition and fees at the school
d. Test for a significant relationship at the .05 level of significance. What is your conclusion?
e. Did the estimated regression equation provide a good fit? Explain.
f. Suppose that we randomly select a recent graduate of the University of Virginia graduate school of business. The school has an out-of-state tuition and fees of $43,000. Predict the starting salary and bonus for this graduate.
School
Salary & Bonus ($1000s) Tuition & Fees ($1000s) schools
Arizona State University
98 28 Babson College
94 35 Cornell University
119 44 Georgetown University
109 40 Georgia Institute of Technology
88 30 Indiana University-Bloomington
105 35 Michigan State University
99 26 Northwestern University
123 44 Ohio State University
97 35 Purdue University-West Lafayette
96 33 Rice University
102 36 Stanford University
135 46 University of California - Davis
89 35 University of Florida
71 23 University of Iowa
78 25 University of Minnesota-Twin Cities
100 37 University of Notre Dame
95 36 University of Rochester
99 38 University of Washington
94 30 University of Wisconsin-Madison
93 27