The data in the File San Fran Housing Demand represents the demand for single family housing in a metropolitan area from 1990 - 2017. The data are coded as follows:

Quantity = Number of single family housing units sold in a year in San Diego MSA

Population = population of the metropolitan area in thousands

Price = average price of single family housing per square foot, $'s

Income = median income in the metropolitan area in thousand $'s.

Rent = average rent for apartments in the area, $'s

(Note: Price, Income, and Rent data are adjusted for inflation)

Use the data and a spreadsheet program to estimate the demand for single family housing in the metropolitan area. Brief report which includes the following:

1. Analyze the overall validity of the model, including a discussion of the R², adjusted R².
2. Discuss the significance of individual regression variables by using the t-statistics and the p-values.
3. Should all variables be retained in the regression? If yes, please explain why and if no, please explain why not. If no, please re-estimate the model including only those variables that you think should be retained.
4. Interpret the slope coefficients. Use the estimated model to predict sales of single family housing for 2021.
5. Calculate the elasticity's for price, income, and rent. How do you interpret these elasticity's?
6. Use the elasticity results (b) in your role as a consultant to a builder, Home Building Inc (HBI), to answer the following questions:

i. How will a slowing in the local economy affect the demand for the housing?

ii. A commercial developer is building many apartments in the same vicinity as the single family homes built by HBI. Should HBI be concerned?

iii. Could HBI increases the prices of the single family homes it is building?

Year	Quantity	Price	Income	Population	Rent
1990	23059	224.5214	59.34509	1875.5	1547.859		Price	Price per Sq Ft
1991	20453	225.7825	57.63596	1887.5	1532.78		Income	Per Capita Income (000 $'s)
1992	20373	222.079	55.67568	1903.8	1503.119		Population	000 People
1993	20964	221.0202	55.45455	1929.1	1508.081		Rent	$'s Typical 2 Bd Apt
1994	18953	218.9122	55.66794	1957.6	1500.672
1995	19417	219.9094	55.99638	1979.3	1500.223
1996	22913	224.1233	56.51982	2007	1536.564
1997	23491	228.1532	57.06383	2031.8	1570.213
1998	25876	235.1864	57.30956	2058.7	1559.157
1999	23245	243.4686	56.79939	2087.8	1539.051
2000	21949	243.0564	56.37283	2118.3	1549.133
2001	19645	240.5718	55.31381	2130	1546.025
2002	21024	235.3528	54.08412	2149.6	1530.221
2003	18567	231.2654	53.57238	2171.6	1490.453
2004	21879	227.2686	53.23625	2184.8	1490.615
2005	24176	223.5587	53.72449	2197.7	1510.334
2006	24686	222.6352	54.98446	2183.1	1548.222
2007	27341	225.2596	55.83995	2190.2	1582.162
2008	29462	233.547	56.7825	2214	1583.22
2009	25476	242.3264	57.25694	2245.5	1596.065
2010	30375	250.651	59.04814	2277.2	1585.886
2011	31368	249.9791	59.44561	2250.7	1575.9
2012	31987	250.3858	60.33431	2275.8	1580.998
2013	28915	248.2356	59.5032	2274.97	1578.888
2014	28500	249.1235	59.3427	2275.86	1580.026
2015	28435	250.4789	60.0321	2280.65	1584.332
2016	29995	251.5643	60.4568	2282.67	1589.456
2017	29579	252.12	60.501	2284.57	1592.45
2021		240	62	2345.7	1610