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# categorical variables are in the data as words, not as numbers that are codes for words.

INSTRUCTIONS TO CANDIDATES

Assignment 3

Situation: The situation for this assignment continues from the Assignment 1 situation – revisit that homework to remind yourself of the situation. The data in this Assignment is the same as the data in Assignment 1 as well: highered_data.dta.

PART 1 QUESTIONS

1. Below is a conditional means table for the “tuit_per_bach” variable and the “sector” variable. For the rest of this homework (just for the sake of the activity), we will say that cost per bachelor’s degree is a reasonable measure of return on investment. Remember that a lower value for tuit_per_bach is a higher return on investment.

Private Public

Mean 523.23 37.96

Standard Deviation 1431.54 130.28

Discuss the results in this table. Make sure to cover the individual means and standard deviations, the difference in the means, and what that difference tells you about the return on investment for the different sectors.

2. Generate a conditional means table for the “tuit_per_bach” variable and the “carnegie” variable (similar to above for the sector variable). What do you see in terms of any broad conclusions you might draw about the return on investment of different types of institutions by Carnegie classification? Again, make sure you can tell us which institutions seem to have a higher or lower return on investment.

PART 2 QUESTIONS

3. Perhaps we can learn something about the return on investment of an organization by looking at which ones charge the most – are more expensive institutions more “worth it” than less expensive ones? Calculate and report the correlation between “tuition” and “tuit_per_bach,” and include a scatter plot as well. Interpret the direction, size, and coefficient of determination for this correlation.

4. Assuming, for the purpose of this assignment, that cost per bachelor’s degree is a reasonable measure of returns on investment, what would you email back to this media person in terms of their second question, based solely on the analyses you’ve done so far? (Make sure to include information from what you concluded in questions 10, 11, and 12.)

5. Generate and present a crosstabulation of the “carnegie” and “sector” variables. What do you learn from this crosstabulation about the relationship between these two variables?

6. What further analyses or research might you want to do in order to answer this media person’s specific question about return on investment?

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