Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Joan Newman has collected the following data relative to housing and university enrollment. Semester University Enrollment (thousands) Average Lease price ($ per month) Number of

Joan Newman has collected the following data relative to housing and university enrollment.

Semester

University Enrollment (thousands)

Average Lease price ($ per month)

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

Your work must reflect the correct independent and dependent variables based on the problem statements. This is part of the solution that is required. Provide your forecasts to one decimal place ($xxx.x).

a) Joan believes that there is a linear relationship between university enrollment and the number of apartment units leased based only on university enrollment. What is this regression relationship and what is the forecast of apartments leased if the enrollment is expected to be 6,600 students? How strong is this relationship?

b) Now, Joan wants to forecast the number of apartments leased based only on the average lease price. What is this regression relationship and what is your forecast if the average lease price is to be $455? How strong is this relationship?

c) It is believed that the university enrollment changes only with time. So, Joan decides to use a linear regression model to forecast the enrollment for semester 10. What would the forecast for the enrollment be? Also, what is your confidence in this relationship, in other words, how strong is the relationship?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

More Books

Students also viewed these Finance questions

Question

2. What efforts are countries making to reverse the brain drain?

Answered: 1 week ago