Year Institution Expenditure Licenses 2012 East_Carolina_University Expenditure_1 3 2013…

Year Institution Expenditure Licenses 2012 East_Carolina_University Expenditure_1 3 2013 East_Carolina_University Expenditure_1 1 2014 University_of_Alabama Expenditure_1 4 2015 University_of_Alabama Expenditure_1 4 2012 Auburn_University Expenditure_2 11 2013 Auburn_University Expenditure_2 2 2014 Auburn_University Expenditure_2 12 2012 Kansas_State_University_Research_Foundation Expenditure_2 9 2012 Montana_State_ Year Institution Expenditure Licenses 2012 East_Carolina_University Expenditure_1 3 2013 East_Carolina_University Expenditure_1 1 2014 University_of_Alabama Expenditure_1 4 2015 University_of_Alabama Expenditure_1 4 2012 Auburn_University Expenditure_2 11 2013 Auburn_University Expenditure_2 2 2014 Auburn_University Expenditure_2 12 2012 Kansas_State_University_Research_Foundation Expenditure_2 9 2012 Montana_State_University Expenditure_2 23 2013 Rice_University Expenditure_2 9 2017 Rice_University Expenditure_2 0 2012 Cleveland_Clinic Expenditure_3 34 2013 Cleveland_Clinic Expenditure_3 33 2014 Cleveland_Clinic Expenditure_3 25 2015 Cleveland_Clinic Expenditure_3 23 2017 St._Jude_Children’s_Research_Hospital Expenditure_3 15 2012 University_of_Kentucky_Research_Foundation Expenditure_3 9
1. The attached data is from a study of institutions’ output (column: License) and some related factors. I masked out some information due to privacy reason. You can treat License as the number of some productions, higher License indicates a better performance. We are interested in study the effects of other factors to the production License. One major factor is expenditure of each institution (column: Expenditure). We also list the names of those institutions (column: Institution) and the year (column: Year) we record the data. Please answer the following questions.
(a) Explain your understanding of each term without looking at the data, it will help you decide your model. It may include fixed term, random term, nested structure, and so on.
(b) Create a proper model to this data based on your observation and analysis. The response is License.
(c) Draw conclusions on your model using numerical result. Compare it with 1a.
(d) We usually assume there is not temporal trend. Please verify the time dependence of this data. Please also check other assumptions.
(e) Do institutions perform similarly in each expenditure group? Regardless of Year variable.
(f) What is your experimental design of studying the possible effects on the institutions output if you are the researcher? You may consider other factors with different features than what we had in this dataset.

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