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Comparing private and public college tuition. Accordingto
Chapter 12, Problem 143SE(choose chapter or problem)
Comparing private and public college tuition. According To the Chronicle of Higher Education Almanac, 4-year private colleges charge, on average, five times as much of tuition and fees than 4-year public colleges. In order to estimate the true difference in the mean amount charged for an academic year, random samples of 40 private colleges and 40 public colleges were contacted and questioned about their tuition structures.
a. Which of the procedures described in Chapter 8 could be used to estimate the difference in mean charges between private and public colleges?
b. Propose a regression model involving the qualitative independent variable type of college that could be used to investigate the difference between the means.Be sure to specify the coding scheme for the dummy variable in the model.
c. Explain how the regression model you developed in part b could be used to estimate the difference between the population means.
Questions & Answers
QUESTION:
Comparing private and public college tuition. According To the Chronicle of Higher Education Almanac, 4-year private colleges charge, on average, five times as much of tuition and fees than 4-year public colleges. In order to estimate the true difference in the mean amount charged for an academic year, random samples of 40 private colleges and 40 public colleges were contacted and questioned about their tuition structures.
a. Which of the procedures described in Chapter 8 could be used to estimate the difference in mean charges between private and public colleges?
b. Propose a regression model involving the qualitative independent variable type of college that could be used to investigate the difference between the means.Be sure to specify the coding scheme for the dummy variable in the model.
c. Explain how the regression model you developed in part b could be used to estimate the difference between the population means.
ANSWER:Step 1 of 4
Number of public colleges considered 40
Number of private colleges considered 40
We are given that 4-year private colleges charge, on average five times as much for
tuition and fees than 4-year public college.
The objective is to estimate the true difference in the mean amounts charged in the
academic year 2006-2007.