ISOM 201 Chapter 4

ISOM 201 Chapter 4.

I’m stuck on a Excel question and need an explanation.

There are only one question in this homework. Have to finish in excel sheet. Homework 2 chapter 4

Instruction:

Generate three excel sheet and name them Model 1, Model 2, and response sheet

Solve the following problem in the excel and answer all the section in response sheet and highlight in model 1, model 2 sheet if necessary

Specify each section by the related letter in excel cell you are responding

Use only 2 decimal digit in responses

Save the file with your name and Submit only one file (10 Points)

A sample of nine public universities and nine private universities was taken. The total cost for the year (including room and board) and the median SAT score (maximum total is 2400) at each school were recorded. It was felt that schools with higher median SAT scores would have a better reputation and would charge more tuition as a result of that. The data are in the attached excel file. Run the regression one time with Total cost as dependent variable and Median SAT as independent variable and name it Regression model 1 and Run regression for the second time with Total cost as dependent variable and Median SAT and Dummy variable as independent variables and name it Regression model 2.

a)Write the predicted regression equation and highlight it for both models

b)High light the r2 and explain it for both models

c) Which model is a better model based on Adjusted R2? Why Adjusted R2 and not R2 ?

d)Highlight Significance F and explain it for both models

e)Highlight the p-value and discuss if independent variables are significant or not for both models

f)Discuss the sign of the co-efficient for both models and compare them.

g)Generate Residual vs fitted value for the regression model 1 and interpret it

h) Generate Normal Probability Plot for regression model 1 and interpret it

Hint: Dummy variable gets the value of 0 for public universities and1 for private universities.

Total Cost ($)

Median SAT

Dummy

University 1

21700

1990

Public

University 2

15600

1620

Public

University 3

16900

1810

Public

University 4

15400

1540

Public

University 5

23100

1540

Public

University 6

21400

1600

Public

University 7

16500

1560

Public

University 8

23500

1890

Public

University 9

20200

1620

Public

University 10

30400

1630

Private

University 11

41500

1840

Private

University 12

36100

1980

Private

University 13

42100

1930

Private

University 14

27100

2130

Private

University 15

34800

2010

Private

University 16

32100

1590

Private

University 17

31800

1720

Private

University 18

32100

1770

Private

ISOM 201 Chapter 4

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