Reference no: EM13623140

Alumni donations are an important source of revenue for colleges and universities. If administrators could determine the factors that influence increases in the percentage of alumni who make a donation, they might be able to implement policies that could lead to increased revenues. Research shows that students who are more satisfied with their contact with teachers are more likely to graduate. As a result, one might suspect that smaller class sizes and lower student-faculty ratios might lead to a higher percentage of satisfied graduates, which in turn might lead to increases in the percentage of alumni who make a donation. Table 14.14 shows data for 48 national universities ( America's Best Colleges, Year 2000ed.). The column labeled % of Classes Under 20 shows the percentage of classes offered with fewer than 20 students. The column labeled Student/Faculty Ratio is the number of students enrolled divided by the total number of faculty. Finally, the column labeled Alumni Giving Rate is the percentage of alumni that made a donation to the universityp.664

1. Develop numerical and graphical summaries of the data.

2. Use regression analysis to develop an estimated regression equation that could be used to predict the alumni giving rate given the percentage of classes with fewer than20 students.

3. Use regression analysis to develop an estimated regression equation that could be used to predict the alumni giving rate given the student-faculty ratio.

4. Which of the two estimated regression equations provides the best fit? For this estimated regression equation, perform an analysis of the residuals and discuss your findings and conclusions.

5. What conclusions and recommendations can you derive from your analysis?

College	% of Classes Under 20	Student/Faculty Ratio	Alumni Giving Ratio
Boston College	39	13	25
Brandeis University	68	8	33
Brown University	60	8	40
California Institute of Technology	65	3	46
Carnegie Mellon University	67	10	28
Case Western Reserve Univ.	52	8	31
College of William and Mary	45	12	27
Columbia University	69	7	31
Cornell University	72	13	35
Dartmouth College	61	10	53
Duke University	68	8	45
Emory University	65	7	37
Georgetown University	54	10	29
Harvard University	73	8	46
John Hopkins University	64	9	27
Lehigh University	55	11	40
Massachusetts Inst. of Technology	65	6	44
New York University	63	13	13
Northwestern University	66	8	30
Pennsylvania State Univ.	32	19	21
Princeton University	68	5	67
Rice University	62	8	40
Stanford University	69	7	34
Tufts University	67	9	29
Tulane University	56	12	17
U. of California-Berleley	58	17	18
U. of California-Davis	32	19	7
U. of California-Irvine	42	20	9
U. of California-Los Angeles	41	18	13
U. of California-San Diego	48	19	8
U. of California-Santa Barbara	45	20	12
U. of Chicago	65	4	36
U. of Florida	31	23	19
U. of Illinois-Urbana Champaign	29	15	23
U. of Michigan-Ann Arbor	51	15	13
U. of North Carolina-Chapel Hill	40	16	26
U. of Notre Dame	53	13	49
U. of Pennsylvania	65	7	41
U. of Rochester	63	10	23
U. of Southern California	53	13	22
U. of Texas-Austin	39	21	13
U. of Virginia	44	13	28
U. of Washington	37	12	12
U. of Wisconsin-Madison	37	13	13
Vanderbuilt University	68	9	31
Wake Forest University	59	11	38
Washington University-St. Louis	73	7	33
Yale University	77	7	50