Question: You are the Centenary college administrator and have been asked to take over the alumni capital campaign to raise money for the school. They want you to raise $3M so they can build a new floor onto the building in Parsippany. You discover a good source of data to use to build a linear regression model relating the amount of money expected to be received and the number of alumni at a school. The data is found on the file Penrose on the CD-ROM. You must develop and interpret the following information:

a. Scatter Plot (1 point)

b. Correlation Coefficient and test it at a significance level of .05 (1 point)

c. Linear Regression Model ( show scatter plot and regression line) (2 points)

d. Test the slope coefficient (that it is 0) at a significance level of .05 (1 point)

e. Discuss the Standard Error of the Model (1 point)

f. R-Squared value (1 point)

g. Test for Positive Autocorrelation (Durbin Watson Statistic) (1 point)

h. How many alumni do you predict will need to contribute for you to raise the $3M? Based on a 93% confidence interval for the slope, what is the average increase (confidence interval estimate) in money’s received from any 100 alumni? (2 points)