The Dean of the College of Business at State University has initiated a fund raising campaign. One

Question:

The Dean of the College of Business at State University has initiated a fund raising campaign. One of the selling points she plans to use with potential donors is that increasing the college€™s private endowment will improve its ranking among business schools as published in various news magazines. She would like to demonstrate that there is a relationship between funding and the rankings. She has collected the following data showing the private endowments ($ millions), and annual budgets ($ millions) from state and private sources, for eight of State€™s peer institutions plus State, and the ranking of each school.

a. Use Excel to develop a linear regression model for the amount of the private endowment and the ranking, and forecast a ranking for a private endowment of $70 million. Does there appear to be a strong relationship between the endowment and ranking?
b. Using Excel, develop a multiple regression equation for all of these data including private endowment and annual budget, and forecast a ranking for a private endowment of $70 million and an annual budget of $40 million. How does this forecast compare to the forecast in part(a)?