Many of today's leading technology companies such as Google and Facebook are based on research projects that were conducted at universities. In this question, we are interested to analyze various factors that impact innovation at universities. The available data includes various research-related factors collected from 143 universities in the United States. The outcome variable of interest is "Startups", which measures the number of startups founded by graduates from that particular university. The predictors are the research expenditure (in million dollars), the number of patents generated from research, and the age of the university's technology transfer office (in years)1 . Answer the following question based on the data provided. Consider a 5% significance level where needed.

The data is the following:

Name of Institution	Startups	Research
Albert Einstein College of Med/Yeshiva Univ.	1	145.5236
Arizona State Univ.	1	237.5212
Auburn Univ.	1	146.9840
Baylor College of Medicine	1	304.2250
Boston Univ./Boston Medical Ctr.	12	343.4238
Bowling Green State Univ.	0	10.7120
Brigham Young Univ.	9	26.3600
Calpoly State Univ, SLO	0	14.8700
Carnegie Mellon Univ.	10	229.2800
Clemnson Univ.	3	139.2837
Colorado State Univ.	3	302.6129
Columbia Univ.	10	640.0000
Cornell Research Fdn., Inc.	5	668.2275
Dartmouth College	1	174.1091
Drexel Univ.	4	102.2090
Duke Univ.	7	678.1842
Duquesne Univ.	0	13.2000
East Carolina Univ.	1	16.1920
Eastern Virginia Medical School	0	30.7770
Emory Univ.	3	390.9652
Florida Atlantic Univ.	0	43.2491
Florida State Univ.	3	206.5418
George Mason Univ.	5	79.8832
Georgetown Univ.	0	144.9570
Georgia Inst. Of Technology	9	536.4125
Harvard univ.	12	660.0815
Indiana Univ. (ARTI)	2	404.6215
Iowa State Univ.	2	251.6740
Johns Hopkins Univ.	12	1183.7680
Johns Hopkins Univ. Applied Physics Laboratory	1	819.2889
Kansas State Univ. Research Fdn.	3	95.8786
Kent State Univ.	0	18.4444
Louisiana State Univ. System	2	391.7670
Louisiana Tech Univ.	1	19.4060
Massachusetts Inst. Of Technology (MIT)	20	1319.0000
Medical College of Georgia Research Inst.	0	57.0852
Medical College of Wisconsin Research Fndtn	1	134.2000
Medical Univ. of South Carolina	2	161.1623
Michigan State Univ.	3	356.7670
Michigan Technological Univ.	2	60.3560
Mississippi State Univ.	4	210.9510
Montana State Univ.	2	96.1506
Mount Sinai School of Medicine of NYU	0	296.3800
New Jersey Inst. Of Technology	0	89.7920
New Mexico State Univ.	0	120.3234
New York Univ.	6	310.6990
North Carolina State Univ.	5	366.1370
North Dakota State Univ.	0	115.5130
Northeastern Univ.	2	56.7275
Ohio State Univ.	5	702.5635
Ohio Univ.	3	25.9776
Oklahoma State Univ.	2	138.7592
Oregona Health & Science Univ.	4	279.8494
Oregon State Univ.	1	188.0560
Penn State Univ.	1	717.2440
Portland State Univ.	0	40.1469
Purdue Research Fdn.	11	495.0990
Rensselaer Polytechnic Inst.	1	63.1974
Research Foundation of SUNY	10	784.3243
Rice Univ.	2	83.5624
Rutgers, The State Univ. of NJ	2	323.4040
San Diego State Univ.	0	106.8504
Stanford Univ.	9	694.2175
Stevens Inst. Of Technology	2	29.1348
Temple Univ.	0	150.3760
Texas A&M Univ. System	1	582.3650
The UAB Research Fdn.	1	404.6150
Thomas Jefferson Univ.	0	94.0318
Tufts Univ.	2	151.0077
Tulane Univ.	1	146.8751
Univ. of Akron	5	49.5978
Univ. of Alabama	3	32.8460
Univ. of Alabama in Huntsville	10	65.3200
Univ. of Arizona	6	547.1974
Univ. of Arkansas for Medical Sciences	0	115.5379
Univ. of Arkansas, Fayetteville	1	110.8750
Univ. of California System	55	4403.6620
Univ. of Central Florida	2	108.0000
Univ. of Chicago/UC Tech	0	317.5155
Univ. of Cincinnati	0	211.3931
Univ. of Colorado	11	661.0000
Univ. of Connecticut	3	161.3362
Univ. of Delaware	0	166.3700
Univ. of Florida	14	483.7980
Univ. of Georgia	2	350.2990
Univ. of Hawaii	0	211.7782
Univ. of Houston	1	84.4900
Univ. of Idaho	0	81.5322
Univ. of Illinois, Chicago, Urbana	11	830.7790
Univ. of Iowa Research Fdn.	0	293.5640
Univ. of Kansas	2	197.7970
Univ. of Kentucky Research Fdn.	8	242.9660
Univ. of Louisville	3	164.1230
Univ. of Maryland Biotechnology Inst.	0	43.2130
Univ. of Maryland, Baltimore	2	377.4180
Univ. of Maryland, Baltimore Country	0	66.8014
Univ. of Maryland, College Park	3	346.3693
Univ. of Massachusetts	2	435.2470
Univ. of Miami	0	325.3000
Univ. Of Michigan	13	875.7535
Univ. Of Minnesota	1	583.5240
Univ. of Mississippi	3	54.7090
Univ. of Missouri, all campuses	6	354.7636
Univ. of Nebraska	3	342.6482
Univ. of New Hampshire	0	98.8208
Univ. of New Mexico/Sci. & Tech. Corp.	6	197.6285
Univ. of North Carolina at Greensboro	2	33.1258
Univ. of North Carolina, Chapel Hill	5	619.6000
Univ. of North Carolina, Charlotte	3	29.8081
Univ. of North Texas Health Science Ctr.	0	31.8954
Univ. of Notre Dame	0	103.3000
Univ. of Oklahoma, All Campuses	1	158.9638
Univ. of Oregon	0	101.3423
Univ. of Pennsylvania	2	667.3547
Univ. of Pittsburgh	3	641.6260
Univ. of Rochester	6	361.6022
Univ. of South Alabama	0	28.0793
Univ. of South Carolina	5	185.1979
Univ. of South Dakota	0	22.7420
Univ. of South Florida	5	298.5000
Univ. of Southern California	5	484.6000
Univ. of Tennessee	2	246.3971
Univ. of Texas at Austin	10	527.1413
Univ. of Texas Health Science Ctr., Houston	2	197.2517
Univ. of Texas Health Science Ctr., San Antonio	0	201.3230
Univ. of Texas Medical Branch	2	153.4613
Univ. of Texas Southwestern Med. Ctr.	2	377.1696
Univ. of Texas, Arlington	2	66.6105
Univ. of Toledo	3	59.5830
Univ. of Utah	20	273.0059
Univ. of Vermont	5	90.6422
Univ. of Virginia Patent Fdn.	2	257.6510
Univ. of Washington/Wash. Res. Fdn.	9	1026.7885
Univ. of West Florida	0	14.4730
Utah State Univ.	0	148.2570
Vanderbilt Univ.	4	444.3325
Virginia Commonwealth Univ.	3	148.6550
Virginia Tech Intellectual Properties, Inc.	3	199.6359
W.A.R.F./Univ. of Wisconsin Madison	6	942.0000
Wake Forest Univ.	2	148.6864
Washington State Univ. Research Fdn.	2	140.8622
Wayne State Univ.	1	249.2100
West Virginia Univ.	1	154.3820

a) Use software to make a boxplot of the number of startups (Startups variable) and produce a scatterplot of this variable against the research expenditures (Research variable). Are there any apparent outliers in the data?

b) Use StatCrunch to estimate the simple linear regression model below and report your results. Write down the regression equation and provide software output [1 mark] Startupsi = 0 + 1 Research i + I

c) For the regression model from part b), create the corresponding scatterplot of residuals versus predicted (fitted) values as well as a normal probability plot of residuals. Note that you can ask StatCrunch to produce these plots when fitting the regression model. Looking at these two plots, does the estimated model appear satisfactory?