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# Case Problem Alumni Giving

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Alumni donations are an important source of revenue for colleges and universities. If administators 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 persentage of satisfied graduates,which in turn might lead to increases in the persentage of alumni who make a donation. Table 14.13 shows data for 48 national universities(america's Best Colleges,Year 2000 ed.). The column labeled % of Classes Under 20 shows the persentage of classes offered with fewer enrolled divided by the total number of faculty. Finally, the column labeled Alumni Giving Rate is the persentage of alumni that made a donation to the university.

Managerial Report
1-Develop numerical and graphical summaries of the data.
2-use regression analysis to develop an estimated regerssion equation that could be used to predict the alumni giving rate giving the percentage of classes with fewer than 20 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?

Please use the equations, excel results, and explanations of each quesion is required on this case. I also need introduction that explans what will we do in this problem.

https://brainmass.com/statistics/descriptive-statistics/case-problem-alumni-giving-468657

#### Solution Summary

This solution provides complete calculations in the attached Excel file and provides graphs and analysis also included in a Word document in a 1400-word report on alumni giving.

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## Managerial Reports: Alumni

This case study involves Alumni, which 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 (alumni giving rate), they might be able to implement policies that could lead to increased revenue. 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.

The managerial report should contain such as:
1. Choose the best-fit simple linear regression analysis to develop an estimated equation that could be used to predict the alumni-giving rate.
2. Use the multiple linear regression analysis to develop an estimated regression equation that could be used to predict the alumni-giving rate given the graduation rate, the percentage of classes with fewer than 20 students, and the student-faculty ratio. Is it a better fit compared with your answer in part 1? Any multicollinearity exists?
3. What conclusion and recommendation can you derive from F and t tests in part 2?
4. With the multiple linear regression equation in part 2, what is the alumni-giving rate with graduation rate as 80%, 70% of classes with fewer than 20 students, and student-faculty ratio as 15?
5. Any possible modification you suggest for a better-fit multiple linear regression model? Adding or dropping independent variables? Change to any nonlinear model? Explain your suggestion.

Use the information provided in the attached Excel file.

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