Question
Chasewood Apartments is a 300-unit complex near Fairway University that attracts mostly university students. The manager has collected the following data and wants to project
Chasewood Apartments is a 300-unit complex near Fairway University that attracts mostly university students. The manager has collected the following data and wants to project the number of units leased in Semester 9 using simple linear regression. Here is the information that has been collected:
Semester | University Enrollment (in thousands) | Average Lease Price ($) | Number of Units Leased |
1 | 7.2 | 450 | 291 |
2 | 6.3 | 460 | 228 |
3 | 6.7 | 450 | 252 |
4 | 7.0 | 470 | 265 |
5 | 6.9 | 440 | 270 |
6 | 6.4 | 430 | 240 |
7 | 7.1 | 460 | 288 |
8 | 6.7 | 440 | 246 |
In answering these questions, you must identify and use the correct independent and dependent variables.
b) Suppose the manager believes that the Number of Units Leased is a function only of the Average Lease Price for that semester. Provide the linear regression relationship the manager should use and what is the forecast for the Number of Units Leased for Semester 9 if the average lease price for that semester is $460?
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