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Stats_Regression model of new MBA salaries

Analyze statistical data for the project:

School Ranking Region Type Salary/Bonus Employment Rate within 6 months Additional Fees Annual Cost Average Indebtedness
BYU (Marriott) 29 Utah private $93,448 93.30% $0 $8,700 $21,888
Dartmouth College (Tuck) 7 East private $122,812 90.10% $250 $42,990 $90,078
Washington University in St. Louis (Olin) 25 MO private $96,559 82.40% $829 $37,900 $40,745
Boston College 34 East private $94,271 82.80% $150 $18,390 $50,059
Carnegie Mellon University 17 East private $111,996 85.30% $394 $42,250 $19,700
Columbia University 9 East private $129,427 81.60% $1,986 $43,436 $21,500
Cornell University 14 East private $118,888 87.10% $1,560 $42,700 $73,800
Duke University 14 East private $117,473 80.50% $3,993 $41,670 $82,154
Emory University 24 East private $107,991 71.60% $376 $37,200 $61,883
Georgetown University 22 East private $108,959 82.10% $2,217 $37,800 $51,200
Harvard University 1 East private $135,630 90.10% $6,838 $41,190 $77,550
Massachussets Institute of Tech 4 East private $127,839 86.90% $236 $44,556 $83,887
New York University 10 East private $124,752 88.70% $2,022 $39,800 $64,141
Stanford University 1 West private $134,654 86.80% $0 $45,921 $72,500
Univ. of Chicago 4 East private $126,818 89.20% $639 $44,500 $83,600
Univ. of Pennsylvania 3 East private $132,171 90.10% $7,772 $41,950 $93,500
Univeristy of Southern California 21 West private $103,317 72.30% $2,600 $39,250 $14,352
University of Notre Dame 34 East private $95,263 71.40% $550 $35,490 $57,874
University of Rochester 25 East private $99,436 78.30% $951 $36,840 $27,903
University of Minnesota--Twin Cities (Carlson) 27 Minnesota public $100,104 76.70% $2,690 $23,838 $44,214
Arizona State University 22 West public $98,318 89.50% $150 $16,378 $39,000
Georgia Institute of Tech 29 East public $88,288 84.90% $1,146 $7,218 $22,434
Indiana University 20 East public $105,296 86.90% $1,438 $16,796 $47,500
Michigan State University 40 East public $98,557 90.10% $31 $18,650 $34,802
Ohio State University 27 Ohio public $97,622 77.10% $837 $20,346 $28,574
Purdue University--West Lafayette (Krannert) 33 East public $96,196 77.80% $1,014 $17,050 $16,636
Texas A&M University 29 Texas public $97,496 93.80% $7,982 $7,333 $26,000
University of Wisconsin 29 East public $93,097 83.00% $858 $10,240 $15,315
University of California, Berkely 7 West public $116,263 82.50% $0 $32,901 $54,254
University of California, LA 11 West public $115,318 79.00% $0 $28,446 $70,000
University of Florida 34 East public $70,592 80.40% $500 $7,478 $18,207
University of Illinois 38 East public $92,239 77.40% $3,110 $17,500 $17,000
University of Maryland 39 East public $99,433 69.50% $14,761 $14,454 $17,731
University of Michigan 12 East public $120,408 86.10% $189 $38,100 $66,524
University of North Carolina 19 East public $112,375 80.10% $3,133 $18,375 $70,366
University of Texas 18 Texas public $109,871 85.30% $1,000 $20,418 $62,808
University of Virginia 14 East public $121,279 87.90% $102 $37,500 $69,458
University of Washington 34 West public $93,677 67.10% $543 $19,300 $30,800

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Hi,
Please find the solution of your posting.

(a) Objective
We need to identify the significant variables which can predict the dependent variable salary/bonus using the independent variables Ranking, Employment Rate within 6 months, Additional Fees, Annual Cost and Average Indebtedness. We need to find the significant variables which are helpful in predicting the dependent variable salary.
(b)

(c) scatter diagrams

There is a good association between salary/bonus and ranking, salary/bonus and Average Indebtedness and salary/bonus and Annual Cost but there is a poor association between salary/bonus and Employment Rate within 6 months and salary/bonus and Additional Fees. The same can be seen by the correlation coefficient between these variables.

(d) Simple linear models
Simple linear regression for Rankings as independent variable
Regression Analysis

Regression Statistics
Multiple R 0.910245529
R Square 0.828546923
Adjusted R Square 0.823784338
Standard Error 6324.99971
Observations 38

ANOVA
df SS MS F Significance F
Regression 1 6959777365 6959777365 173.9699856 2.36534E-15
Residual 36 1440202368 40005621.33
Total 37 8399979733

Coefficients Standard Error t Stat P-value Lower 95% Upper 95%
Intercept 132638.3011 2124.008455 62.44716246 2.66573E-38 128330.6123 136945.9898
Ranking -1195.02877 90.60271194 -13.18976822 2.36534E-15 -1378.779585 -1011.277955

Simple linear regression for Average Indebtedness as independent variable
Regression Analysis

Regression Statistics
Multiple R 0.749088521
R Square 0.561133613
Adjusted R Square 0.54894288
Standard Error 10119.38289
Observations 38

ANOVA
df SS MS F Significance F
Regression 1 4713510973 4713510973 46.02952203 6.30494E-08
Residual 36 3686468760 102401910
Total 37 8399979733

Coefficients Standard Error t Stat P-value Lower 95% Upper 95%
Intercept 86178.70173 3625.331612 23.77126039 1.33726E-23 78826.18849 93531.21498
Average Indebtedness 0.45291895 0.066757837 6.784506027 6.30494E-08 0.317527781 0.588310119

Simple linear regression for Annual Cost as independent variable
Regression Analysis

Regression Statistics
Multiple ...

Solution Summary

Regression models for new MBA salaries are examined.

$2.19