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Qnt 561 Week 8 Final Project

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Final Project Week 8 College education is an important investment that demands both time and money. Most students depend on college loans to cater for their costs of attendance, including tuition and fees. The lenders expect the students to pay back the loans in full amount after college. However, the ability of the students to pay back the loans is dependent on their success in the job market, particularly their earnings. Some college degrees lead to careers with good pay while others do not. In this regard, an evaluation of the return on investment (ROI) of a college degree is important. The ROI evaluates whether the benefits of attending college, usually the future earnings, outweigh the costs. It is important to choose a college that guarantees a better ROI to earn back the tuition costs and offset the student loans. The current evaluation compares the ROIs of two college majors (business and engineering) and two different types of schools (public and private).
Data Description The data for the study is sourced from Payscale.com and comprises 40 cases for two college majors (business = 20 cases, and engineering = 20 cases) for the year 2013. There are four main variables in the data for each major, including the school type, cost, 30-year ROI, and annual ROI. The school type …show more content…

Mainly, the external validity of the current findings is not ascertained because of the sampling approach used (Trochim, 2016). In particular, it is evident from the onset that the sample is not representative of all the colleges in the U.S. but represents the schools with the best ROI for the chosen majors. In addition, the sample size is small, which affects the accuracy of the estimates. In this context, further studies are necessary using a more representative and larger

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