Joseph Randal has just been named the director of alumni relationships at a local university. Alumni donations are an important source of revenue for colleges and universities. If administrators could determine the factors that could lead to 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 ration might lead to a higher percentage of satisfied graduates, which in turn might lead to increases in percentage of alumni who make a donation. Joseph is feeling an extra pressure to increase total giving to the university because of recent budget cuts. Joseph is also feeling pressured to increase the percentage of alumni to give. Joseph found this new metric called average alumni giving rate U.S. News & World Report. To investigate further, Joseph needs to assemble the data on classes, graduation rates, and most important, alumni giving rates for top 123 colleges and universities based on alumni giving. The attached data base shows data of the top 123 colleges ranked by U.S. News 8& World Report. Questions to be answered in your report: 1. Use methods of descriptive statistics to summarize the data. 2. Develop and estimated simple linear regression model that can be used to predict the alumni giving rate, given the graduation rate. Discuss your findings. 3. Develop an estimated multiple linear regression model that could be used to predict the alumni giving rate using the graduation, % of Classes Under 20, and Student/Faculty Ratio as independent variables. Discuss your findings. 4. Which of the 123 schools has the most (least) impressive giving rate? Discuss your findings. 5. Consider a school that similar to Joseph's university. Joseph's university has 65% graduation rate and a student-faculty ration of 19:1, 37% of the classes have fewer than 20 students, 23% of the classes have more than 50 students, and have a freshman retention rate of 80%. Should Joseph's university giving rate be greater or less than 8%? 6. What conclusions and recommendations can you derive from your analysis? Exhibit 3 ALUMNI GIVING Summary Statistics GTS0 Alumni Giving Data SFR LT20 GRAD FRR GIVE One Variadle Summary Alumni Giving Data Alumni Giving Data Alumni Giving Data Alumni Giving Data Alumni Giving Data Mean 17.772 0.4037 0.13628 0.6452 0.84114 0.14179 0.00361 0.06006 0.0288 0.1698 20.407 0.0179 0.00705 0.00651 0.08067 1.1040 Variance Std. Dev. 4.517 0.1339 0.08394 -0.3623 1.1068 0.3800 Skewness -0.0129 -0.0459 -0.2427 Median 18.000 0.13000 0.6400 0.84000 0.13000 0.97000 19.000 6.000 31.000 123 Mode 0.3400 0.16000 0.8000 0.13000 Minimum 0.1400 0.00000 0.2600 0.58000 0.02000 Maximum 0.9500 0.31000 0.9600 0.98000 0.41000 Count 123 123 123 123 123 Source: Created by the case writer using StatTools, a statistics toolkit from the Palisade Corporation. Exhibit 2 ALUMNI GIVING Alumni Giving Database ID School SFR LT20 GT50 GRAD FRR GIVE 1 Arizona State University 2 Arkansas State University-Jonesboro 3 Auburn University 24 42% 16% 59% 81% 8% 19 49% 4% 37% 69% 11% 18 24% 17% 66% 87% 31% United States Air Force Academy 5 United States Military Academy 6 University of Akron 7 University of Arizona 8 University of Arkansas 9 Ball State University 4 74% 0.10% 81% 88% 11% 95% 0% 86% 92% 28% 20 39% 6% 35% 69% 15% 20 35% 17% 60% 79% 5% 18 28% 18% 58% 83% 23% 18 34% 12% 57% 78% 11% 10 Baylor University 11 Boise State University 14 49% 9% 71% 85% 14% 21 33% 11% 27% 67% 8% 12 Boston College 13 Bowling Green State University 14 Brigham Young University-Provo 14 47% 6% 91% 96% 27% 19 33% 7% 61% 75% 8% 21 46% 12% 78% 84% 17% 15 University at Buffalo-SUNY 16 University of Alabama 17 Central Michigan University 18 Clemson University 19 Colorado State University %88 85% 16 36% 21% 67% 9% 19 46% 16% 67% 34% 22 32% 11% 54% 78% 8% 16 51% 13% 76% 91% 28% 18 34% 19% 64% 83% 7% 20 University of California Berkeley 21 University of Cincinnati 22 University of Colorado-Boulder 23 California State University-Fresno 24 Duke University 25 East Carolina University 26 Eastern Michigan University 27 Florida Atlantic University 28 Florida International University 29 Florida State University 17 62% 15% 91% 97% 12% 17 38% 11% 56% 84% 11% 18 38% 16% 68% 84% 8% 20 18% 10% 49% 83% 4% 71% 6% 94% 97% 36% 17 33% 14% 57% 78% 5% 18 39% 5% 38% 72% 3% 21 27% 15% 42% 77% 4% 28 23% 22% 46% 81% 6% 22 35% 16% 74% 90% 19% 30 University of Connecticut 31 University of Florida 32 Georgia Institute of Technology 18 44% 17% 81% 93% 17% 21 41% 16% 84% 96% 15% 19 40% 23% 80% 93% 28% 16% 33 Georgia State University 34 University of Georgia 35 University of HawaiiManoa 36 University of Houston 37 Indiana University-Bloomington 38 lowa State University 39 Kansas State University 20 14% 48% 83% 6% 19 35% 12% 82% 94% 14% 14 45% 10% 50% 78% 8% 23 28% 22% 46% 79% 13% 19 34% 18% 71% 90% 16% 17 30% 20% 70% 85% 15% 21 49% 11% 60% 79% 19% 40 Kent State University 20 45% 8% 50% 76% 4% 10% 55% 41 University of Idaho 42 University of Illinois -Urbana-Champaign 43 University of Iowa 44 University of Kansas 45 University of Kentucky 46 Louisiana State University-Baton Rouge 47 Louisiana Tech University 18 45% 78% 11% 16 34% 21% 84% 94% 13% 16 49% 12% 70% 84% 12% 20 42% 12% 61% 79% 18% 18 30% 16% 58% 80% 12% 22 34% 19% 61% 85% 14% 22 48% 9% 49% 73% 13% 48 University of Louisiana-Lafayette 49 University of Louisiana Monroe 50 University of Louisville 51 Marshall University 23 30% 7% 40% 74% 7% 18 30% 13% 30% 72% 5% 18 25% 12% 49% 78% 12% 20 38% 4% 44% 71% 10% 52 Miami University-Oxford 53 Michigan State University 54 Middle Tennessee State University 55 Mississippi State University 17 32% 12% 80% 89% 16% 16 23% 21% 77% 91% 14% 21 32% 7% 45% 81% 6% 20 38% 14% 58% 83% 17% 56 University of Maryland-College Park 57 University of Massachusetts- Amherst 58 University of Memphis 59 University of Miami 60 University of Michigan-Ann Arbor 61 University of Minnesota- Twin Cities 62 University of Missouri 63 New Mexico State University 64 North Carolina State University-Ralcigh 18 35% 16% 81% 94% 10% 19 45% 17% 69% 87% 11% 15 36% 11% 40% 76% 6% 11 53% 7% 80% 90% 17% 15 48% 16% 90% 96% 15% 21 38% 19% 70% 89% 13% 20 47% 15% 69% 85% 16% 20 45% 10% 45% 76% 6% 18 30% 20% 71% 90% 11% 65 Northern Illinois University 66 Northwestern University 17 44% 12% 56% 75% 6% 7 75% 6% 94% 97% 30% 67 United States Naval Academy 56% 0.10% 89% 97% 21% 68 University of Nebraska-Lincoln 69 University of Nevada-Reno 20 38% 14% 64% 84% 22% 27 33% 16% 50% 78% 9% 70 University of New Mexico 71 University of North Carolina-Chapel Hill 72 University of North Texas 73 University of Notre Dame 74 Ohio State University-Columbus 75 Ohio University 76 Oklahoma State University 77 Oregon State University 78 University of Mississippi 79 University of Oklahoma 80 University of Oregon 81 Pennsylvania State University-University Park 82 Purdue University-West Lafayette 83 Rice University 84 Rutgers, the State University of New Jersey-New Brunswick 85 San Diego State University 86 San Jose State University 22 40% 14% 44% 78% 7% 14 37% 13% 90% 97% 22% 23 29% 20% 48% 76% 5% 12 55% 10% 96% 98% 41% 19 32% 20% 78% 93% 15% 19 42% 11% 65% 80% 19 39% 12% 59% 79% 1% 25 36% 20% 60% 82% 12% 18 46% 13% 59% 80% 13% 17 41% 11% 64% 83% 19% 20 37% 17% 68% 84% 13% 17 39% 15% 85% 93% 21% 14 37% 17% 69% 87% 19% 6 69% 8% 92% 97% 32% 15 41% 20% 77% 91% 10% 21 22% 24% 66% 83% 2% 25 25% 9% 44% 82% 2% 87 Southern Methodist University 12 58% 74% 89% 19% 88 Stanford University 70% 13% 95% 98% 34% 89 University of Pittsburgh 90 University of South Alabama 91 University of South Carolina 92 University of South Florida 93 University of Southern Mississippi 94 Syracuse University 14 42% 18% 78% 92% 13% 22 42% 37% 68% 2% 19 38% 11% 68% 87% 17% 28 23% 16% 51% 86% 15% 18 43% 11% 47% 74% 13% 16 61% 9% 82% 91% 17% 95 Temple University 19 33% 8% 65% 87% 8% 96 Texas A&M University-College Station 97 Texas Christian University 98 Texas State University-San Marcos 99 Texas Tech University 19 21% 23% 79% 92% 21% 13 40% 74% 86% 18% 19 19% 19% 55% 78% 5% 23 22% 24% 63% 82% 15% 100 Troy University 20 58% 4% 40% 72% 9% 101 Tulane University 102 University of Tennessee 103 University of Texas- Austin 104 University of Toledo 105 University of Alabama-Birmingham 106 University of California-Los Angeles 107 University of Central Florida 108 University of Nevada-Las Vegas 109 University of Southern Califomia 110 University of Texas-San Antonio 111 University of Tulsa 112 University of Utah 113 Utah State University 11 67% 6% 74% 89% 19% 15 31% 8% 60% 85% 11% 18 34% 25% 81% 92% 14% 19 34% 31% 45% 68% 5% 17 39% 15% 41% 79% 13% 16 52% 22% 90% 97% 13% 31 28% 23% 63% 86% 16% 22 25% 18% 41% 76% 9 63% 11% 89% 97% 39% 23 24% 23% 26% 58% 5% 11 70% 1% 65% 88% 22% 15 42% 17% 57% 83% 11% 19 32% 18% 56% 74% 8% 114 University of Virginia 115 University of Washington 116 University of Wyoming 117 Vanderbilt University 118 Virginia Tech 119 Wake Forest University 16 52% 16% 93% 97% 22% 12 33% 21% 80% 93% 15% 14 42% 10% 53% 73% 10% 8 64% 9% 91% 97% 23% 17 25% 21% 80% 92% 15% 11 54% 3% 89% 94% 29% 120 Washington State University 15 37% 22% 69% 83% 13% 121 West Virginia University 122 Western Kentucky University 123 Western Michigan University 23 32% 19% 59% 80% 12% 19 43% 6% 49% 73% 13% 19 36% 11% 52% 74% 10% Exhibit 1 ALUMNI GIVING Descriptions of Variables Variable Description An identifier running from 1 to 123 (schools are listed in alphabetical order) Name of the school ID School SFR Student-to-faculty ratio Percentage of classes with fewer than 20 students Percentage of classes with greater than 50 students Average six-year graduation rate Freshman retention rate Average alumni giving rate LT20 GT50 GRAD FRR GIVE