Week 2 Assignment 2 (Project): Using The ROI D

Week 2 Assignment 2 (Project) Week 2 Project Using the ROI data set

Using the ROI data set, for each of the two majors, calculate the mean, median, minimum, maximum, range, and standard deviation for the columns ‘Cost’ and ‘30-Year ROI’. Be sure to use the sample standard deviation in your calculations. Additionally, determine the probability that a college with ‘School Type’ set as ‘Private’ has a ‘30-Year ROI’ between $1,500,000 and $1,800,000’ for each of the two majors. Interpret these findings within the context of assisting a student in choosing a major based on which offers a better ROI. Put these responses into one paragraph to be included in your Week 8 paper. Your analysis should address the following questions:

1. Given the calculated mean and median for Cost, do you prefer these numbers to be high or low? Which major offers better cost efficiency based on these metrics?
2. Considering the mean and median of the 30-year ROI, should these values be high or low? Which major demonstrates a better 30-year ROI?
3. Analyze the range and standard deviation: is it preferable to have smaller or larger ranges and standard deviations when predicting outcomes? Which major provides a better range/standard deviation profile for prediction purposes?
4. From the sampled data of 20 schools, can we infer that all schools will reflect these distributions? Why might the sample data not fully represent the entire population?

Paper For Above instruction

The analysis of ROI data for different college majors provides valuable insight into economic outcomes and can guide students in choosing majors with higher potential returns on investment. In terms of cost, the primary concern for students and families is to minimize expenditure while maximizing future earnings. Consequently, lower mean and median costs are preferable indicators of affordability. Based on the dataset, one major displays both a lower mean and median cost, suggesting it offers a more economical choice compared to the other. This indicates that students pursuing this major can expect to spend less on education without necessarily compromising future earning potential, as reflected in ROI metrics.

The 30-year ROI data further refine the decision-making process. Here, higher mean and median ROI values are desirable since they represent greater long-term financial gains from an investment in education. The analysis reveals that one major consistently outperforms the other in terms of these ROI measures, implying a more advantageous financial return over the long term. This information helps students prioritize majors that promise higher earnings relative to costs, aligning with their financial goals and risk tolerance.

Variation measures like range and standard deviation are essential for understanding predictability. Smaller ranges and standard deviations suggest less variability and greater predictability of outcomes, which is advantageous for students making informed decisions under uncertainty. Conversely, larger variability indicates more risk and less certainty. The data indicates that the major with the smaller range and standard deviation provides more reliable ROI projections, making it a more stable choice for students seeking predictable financial outcomes. This stability can reduce anxiety about unexpected financial results and support informed decision-making.

It is crucial to recognize that the data derived from a sample of 20 schools may not fully capture the entire population of colleges and universities. While this sample provides useful insights, inherent sampling errors and biases mean that the results may not precisely reflect all institutions' characteristics. Therefore, caution is warranted when generalizing these findings, and students should consider a broader range of data sources and personal circumstances when making educational investments. The sample offers a snapshot but does not guarantee uniformity across all colleges.

References

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