CASE ANALYSIS:

Alumni Giving
Felicisimo, Jaurigue, Laset, Santos, Tiu
 1
Descriptive Statistics
SUMMARY OF DATA
 Findings
● Graduation Rate
○ The average graduation rate for the listed universities is 83.04%
○ The middle passing rate among the universities is 83.5%
○ The most common rate of graduation among the universities is 92%

● % of Classes under 20
○ It shows that only 55.73% of the classes in the listed universities have
under 20 students per class.
○ The common percentage of classes with under 20 students per class is
65%
○ The lowest percentage of said classes was 29% while the highest was
77%
 Findings
● Student-Faculty Ratio
○ There is an average of 11 students per teacher in these universities.
○ The most common number of students per teacher is 13.
○ The most number of students a teacher handles is 23.

● Alumni Giving Rate

○ The average rate of alumni donating to their universities is 29.27%
○ The middle percentage is 29%
○ The most common rate of alumni giving is 13%
 2
Estimated Simple
Linear Regression Model
The following provides the estimated regression equation with Graduation Rate as the
independent variable (x) and Alumni-Giving as the dependent variable (y).

7
Before performing any hypothesis tests on the results, we check the
conditions necessary for valid inference in regression.

Estima
ted sim
linear ple
equati
on
ŷ = -68.7612 + 1.1805x
 Findings
The coefficient of
determination R2 is
Significance of Independent Variables
0.571451.

implies that P-value=0.000000000524 which is < 0.05 level.

57.14 % of the Therefore, regression coefficient is significant.
variation in the
values of alumni BEST ESTIMATE:
giving rate in the
sample is ŷ = -68.7612 + 1.1805x
explained by
regression
A unit increase in the graduation rate corresponds to an
model.
increase of 1.1805 in the alumni giving rate.

Parameter b0: when the graduation rate is zero, the

alumni giving rate is -68.7612%.
9
 3
Estimated Multiple
Linear Regression Model
The following provides the estimated regression equation with Graduation Rate (x1), %
of Classes Under 20 (x2) and Student-Faculty Ratio (x3) as independent variables.

11
Estimated multiple linear equation

ŷ = -20.7201 + 0.7482 x1 + 0.0290 x2 - 1.1920 x3

Alumni Giving Rate = -20.7201 + 0.7482

(Graduation Rate) + 0.0290 (% of Classes Under
20) - 1.1920 (Student-Faculty Ratio)
 Before performing any hypothesis tests on the results, we check the
conditions necessary for valid inference in regression.

Residual Plot: Graduation rate

Residual Plot: % of classes under 20
Residual Plot: Student-faculty ratio
 Findings

The coefficient of Significance of Independent Variables

determination R2 is
0.6999 For graduation rate, P-value=4.799E-05 which is < 0.05
level. Therefore, regression coefficient is significant.
implies that
69.99% or 70%
of the variation For % of Classes Under 20, P-value=0.8358 which is >
in the values of 0.05 level. Therefore, regression coefficient is not
alumni giving significant.
rate in the
sample is For Student-Faculty Ratio, P-value=0.0035 which is <
explained by
0.05 level. Therefore, regression coefficient is significant.
regression
model.

16
Alumni Giving Rate = -20.7201 + 0.7482 (Graduation
Rate) + 0.0290 (% of Classes Under 20) - 1.1920
(Student-Faculty Ratio)

With other independent variables held constant, a unit increase in the

graduation rate corresponds to an increase of 0.7482% in alumni giving rate.

With other independent variables held constant, a unit increase in the % of

classes under 20 corresponds to an increase of 0.0290% in alumni giving rate.

With other independent variables held constant, a unit increase in the

student-faculty ratio corresponds to a decrease of 1.1920% in alumni giving rate.

The estimated regression parameter b0 suggests that when the graduation

rate is zero, the alumni giving rate is -20.7201%.
 4
Appropriate Regression Model
Proposal:

Remove independent
variable “% of
classes under 20”

19
Estimated multiple linear equation

ŷ = -19.1063 + 0.7557 x1 - 1.2459 x2

Alumni Giving Rate = -19.1063 + 0.7557

(Graduation Rate) - 1.2459 (Student-Faculty
Ratio)
 The following provides the estimated regression equation with Graduation Rate (x1)
and Student-Faculty Ratio (x2) as the independent variables and Alumni-Giving as the
dependent variable (y).

21
 Before performing any hypothesis tests on the results, we check the
conditions necessary for valid inference in regression.

Residual Plot: Graduation rate

Suggests possible
nonlinear relationship
Residual Plot: Student-faculty ratio
 Findings

The coefficient of Significance of Independent Variables

determination R2 is
0.6996 For graduation rate, P-value=2.34782E-05 which is < 0.05
level. Therefore, regression coefficient is significant.
implies that
69.96% or 70%
of the variation
in the values of For Student-Faculty Ratio, P-value=6.95424E-05 which is
alumni giving < 0.05 level. Therefore, regression coefficient is significant.
rate in the
sample is
explained by
regression
model.

24
Alumni Giving Rate = -19.1063 + 0.7557 (Graduation Rate)
- 1.2459 (Student-Faculty Ratio)

With other independent variables held constant, a unit increase in the

graduation rate corresponds to an increase of 0.7557% in alumni giving rate.

With other independent variables held constant, a unit increase in the

student-faculty ratio corresponds to a decrease of 1.2459% in alumni giving
rate.

estimated regression parameter b0 suggests that when the graduation rate is

zero, the alumni giving rate is -19.1063%
 With % of classes Without % of
under 20 classes under 20

Slight increase in Adjusted R2 upon removal of independent

variable % of classes under 20

No loss in the ability of the regression model to explain

variation in the sample values of alumni giving rate.
 5
Conclusions & Recommendations
The following provides the residual output obtained from the model
The following provides the residual output obtained from the model
Universities achieving substantially higher
than expected Alumni Giving Rate (≥8%):
● University of Texas - Austin (4.7603 to 13)
● Wake Forest University (29.2321 to 38)
● Lehigh University (28.3678 to 40)
● University of Notre Dame (35.6521 to 49)
● Dartmouth College (39.4604 to 53)
● University of Florida (2.8921 to 19)
● Princeton University (46.3719 to 67)
Universities achieving substantially lower than
expected Alumni Giving Rate (≤-8%):
● Georgetown University (37.0126 to 29)
● Northwestern University (38.9969 to 30)
● Columbia University (40.2760 to 31)
● University of California - San Diego (17.8802 to 8)
● Johns Hopkins University (36.9986 to 27)
● University of Michigan - Ann Arbor (24.98 to 13)
Other Possible Independent Variables:
● Tuition & Fees
● Inclusion in World Rankings
● Medical Care Availability
● Provision of Academic and Sports Scholarships
or Student Aid
Recommendations:
● Hire more staff
The regression model showed that an increase in student-faculty
ratio would cause the Alumni Giving Rate to decrease.

● Provision of necessary facilities/resources

Universities must also attend to the students’ needs in terms of
facilities and resources so that they would have the ability to
harness their full potential in terms of academic performance.
Thanks!

Does anyone have

any questions?