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How correlated are gross state product per capita

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Assignment

Assume that your company assigned you to work on the impact of education spending on unemployment and graduation rates. The attached xls file covers a 31-year period of data gathered for a state. Open the attached file including the data and start analyzing the data using statistical analysis tools depending on the nature of the questions. You can use Excel's insert function to compute the correlations between the variables.

1. How correlated are gross state product per capita and education spending per student? Compute and analyze the results.

2. How correlated are gross state product per capita and unemployment rates? Compute and analyze the results.

3. How correlated are gross state product per capita and graduation rates? Compute and analyze the results.

4. After reviewing the data, what hypotheses would you come up with? (An example hypothesis: The higher per capita income the state has, the more it spends on education).

5. From regression analysis point of view, how would you predict the impact of independent variable (gross state product per capita) on dependent variables (education spending per student; unemployment rates; and high school graduation rates)? Briefly explain based on your general knowledge. You do not need to compute or run any statistical tools.

Reference no: EM132241159

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