Administrators at State University believe that decreases in the number of freshman applications that they have experienced are directly related to tuition increases. They have collected the following enrollment and tuition data for the past decade:

Year Freshman Applications Annual Tuition 1 6,050 $3,600 2 4,060 3,600 3 5,200 4,000 4 4,410 4,400 5 4,380 4,500 6 4,160 5,700 7 3,560 6,000 8 2,970 6,000 9 3,280 7,500 10 3,430 8,000

a. Develop a linear regression model for these data and forecast the number of applications for State University if tuition increases to $9,000 per year and if tuition is lowered to $7,000 per year.

b. Determine the strength of the linear relationship between freshman applications and tuition by using correlation.

c. Describe the various planning decisions for State University that would be affected by the forecast for freshman applications. LO.1