Problem 14.8 presented per capita expenditures on education for 15 states, along with rank on income per capita and the percentage of the population that has graduated from high school. The data are reproduced here.

Take per capita expenditures as the dependent variable.

a. Compute beta-weights for each independent variable and compare their relative effect on expenditures. Which was the more important factor?

b. Compute R and R2.

c. Write a paragraph summarizing your findings.
(continued on next page)