Business Statistics

Business Statistics

Project Week 1

For these project assignments throughout the course you will need to reference the data in the ROI Excel spreadheet. Download it here.

In this data set – the ROI data set – for 2 different majors (Business and Engineering), you are given a sample of the 20 best colleges according to ROI (ROI = Return on Investment) and their ‘School Type’, ‘Cost’, ’30-Year ROI’, and ‘Annual % ROI’.

1. Explain the concept of ROI.  Why is ROI important to people?
2. For each of the 2 majors create a pie chart using the column ‘School Type’.
3. For each of the 2 majors create a frequency distribution table  and a histogram using the column ‘Annual % ROI’.  Group with starting at 6% (0.06), ending at 11% (0.11), and go by 0.5% (0.005). Make sure that no two ranges overlap.
4. Make sure that all graphs and charts have labels on each axis.  Make sure pie graphs  have a key so that we know what each section represents. For the histograms, you could title your charts “Histogram Business Major: Annual % ROI” for Business majors and “Histogram Engineering Major: Annual % ROI” for Engineering Majors.
5. The final project for this course has you giving advice to someone who does not know which is the better ROI – business or engineering. Each week, we will examine the data in this same spreadsheet from a different angle.  Look at the graphs that you have constructed.  In an area that is highlighted in yellow, interpret these graphs.  What is the data telling you about ROI and each major?  What conclusions can you draw from these charts. Be as specific as possible.  Your final project for this course puts each week’s “main ideas” together to form one massive project.  Your specificity now will save you time during Week 8.

Business Major
School Type Cost 30 Year ROI Annual ROI
Private $222,700.00 $1,786,000.00 7.70%
Private $176,400.00 $1,758,000.00 8.40%
Private $212,200.00 $1,714,000.00 7.80%
Public $125,100.00 $1,535,000.00 9.10%
Private $212,700.00 $1,529,000.00 7.40%
Public $92,910.00 $1,501,000.00 10.10%
Private $214,900.00 $1,485,000.00 7.30%
Private $217,800.00 $1,483,000.00 7.20%
Private $225,600.00 $1,444,000.00 7.00%
Private $217,300.00 $1,442,000.00 7.10%
Private $226,500.00 $1,441,000.00 7.00%
Private $215,500.00 $1,438,000.00 7.20%
Private $223,500.00 $1,428,000.00 7.00%
Private $226,600.00 $1,414,000.00 7.00%
Private $189,300.00 $1,397,000.00 7.50%
Public $89,700.00 $1,382,000.00 9.90%
Public $87,030.00 $1,376,000.00 10.00%
Private $218,200.00 $1,343,000.00 6.90%
Private $229,900.00 $1,339,000.00 6.70%
Private $148,800.00 $1,321,000.00 8.10%
Best College ROI by Majo 2013: Payscale.com
Engineering Major
School Type Cost 30 Year ROI Annual ROI
Private $221,700.00 $2,412,000.00 8.70%
Private $213,000.00 $2,064,000.00 8.30%
Private $230,100.00 $1,949,000.00 7.90%
Private $222,600.00 $1,947,000.00 8.00%
Private $225,800.00 $1,938,000.00 8.00%
Public $87,660.00 $1,937,000.00 11.20%
Private $224,900.00 $1,915,000.00 7.90%
Private $221,600.00 $1,878,000.00 7.90%
Public $125,100.00 $1,854,000.00 9.80%
Private $215,700.00 $1,794,000.00 7.90%
Public $92,530.00 $1,761,000.00 10.60%
Private $217,800.00 $1,752,000.00 7.70%
Public $89,700.00 $1,727,000.00 10.70%
Private $229,600.00 $1,716,000.00 7.50%
Public $101,500.00 $1,703,000.00 10.20%
Public $115,500.00 $1,694,000.00 9.70%
Public $104,500.00 $1,690,000.00 10.10%
Public $69,980.00 $1,685,000.00 11.50%
Private $219,400.00 $1,676,000.00 7.60%
Public $64,930.00 $1,668,000.00 11.70%