14.7 Problem 13.8 presented per capita expenditures on education for 15 large Canadian cities, along with rank on income per capita and the percentage of the population that has graduated from high school. The data are reproduced below.

Take educational expenditures as the dependent variable.

City Per Capita Expenditures on Education Percentage High School Graduates Rank in per Capita Income A 1,102 82 48 B 1,339 90 7 C 1,907 88 1 D 1,171 84 25 E 1,621 86 9 F 1,276 88 24 G 1,159 81 45 H 1,412 86 5 I 1,487 86 18 J 1,041 80 50 K 1,194 90 22 L 1,262 88 6 M 1,163 79 32 N 1,223 86 15 O 1,549 90 20

a. Compute beta-weights for each independent variable and compare their relative effect on expenditures. Which is the more important factor?

b. Compute R and R 2.

c. Write a paragraph summarizing your findings.