Question
Year undergrad enrollment total LSUS credit hour production undergrad tuition and fees 2000 3,422 90,624 $1,025 2001 3,419 94,446 $1,150 2002 3,543 96,039 $1,184 2003
Year undergrad enrollment total LSUS credit hour production undergrad tuition and fees 2000 3,422 90,624 $1,025 2001 3,419 94,446 $1,150 2002 3,543 96,039 $1,184 2003 3,655 101,352 $1,442 2004 3,910 101,868 $1,545 2005 3,940 100,181 $1,621 2006 3,594 92,486 $1,667 2007 3,556 92,123 $1,667 2008 3,903 94,639 $1,751 2009 4,220 101,972 $1,867 2010 4,058 98,137 $2,062 2011 4,134 98,372 $2,247 2012 4,124 93,163 $2,472 2013 3,674 85,292 $2,803 2014 3,202 87,907 $3,084 2015 2775 91021 $3,355 2016 2587 94077 $3,417 2017 2637 115340 $3,417 2018 2511 137467 $3,663 2019 2577 165057 $3,663 2020 2553 191712 $3,663
date US NSA month US SA year Jan-04 89 1165 Feb-04 102 1159 Mar-04 123 1276 Apr-04 109 1186 May-04 115 1241 Jun-04 105 1180 Jul-04 96 1088 Aug-04 102 1175 Sep-04 94 1214 Oct-04 101 1305 Nov-04 84 1179 Dec-04 83 1242 Jan-05 92 1203 Feb-05 109 1319 Mar-05 127 1328 Apr-05 116 1260 May-05 120 1286 Jun-05 115 1274 Jul-05 117 1389 Aug-05 110 1255 Sep-05 99 1244 Oct-05 105 1336 Nov-05 86 1214 Dec-05 87 1239 Jan-06 89 1174 Feb-06 88 1061 Mar-06 108 1116 Apr-06 100 1123 May-06 102 1086 Jun-06 98 1074 Jul-06 83 965 Aug-06 88 1035 Sep-06 80 1016 Oct-06 74 941 Nov-06 71 1003 Dec-06 71 998 Jan-07 66 891 Feb-07 68 828 Mar-07 80 833 Apr-07 83 887 May-07 79 842 Jun-07 73 793 Jul-07 68 778 Aug-07 60 699 Sep-07 53 686 Oct-07 57 727 Nov-07 45 641 Dec-07 44 619 Jan-08 44 627 Feb-08 48 593 Mar-08 49 535 Apr-08 49 536 May-08 49 504 Jun-08 45 487 Jul-08 43 477 Aug-08 38 435 Sep-08 35 433 Oct-08 32 393 Nov-08 27 389 Dec-08 26 377 Jan-09 24 336 Feb-09 29 372 Mar-09 31 339 Apr-09 32 337 May-09 34 376 Jun-09 37 393 Jul-09 38 411 Aug-09 36 418 Sep-09 30 386 Oct-09 33 396 Nov-09 26 375 Dec-09 24 352 Jan-10 24 345 Feb-10 27 336 Mar-10 36 381 Apr-10 41 422 May-10 26 280 Jun-10 28 305 Jul-10 26 283 Aug-10 23 282 Sep-10 25 317 Oct-10 23 291 Nov-10 20 287 Dec-10 23 326 Jan-11 21 307 Feb-11 22 270 Mar-11 28 300 Apr-11 30 310 May-11 28 305 Jun-11 28 301 Jul-11 27 296 Aug-11 25 299 Sep-11 24 304 Oct-11 25 316 Nov-11 23 328 Dec-11 24 341 Jan-12 23 335 Feb-12 30 366 Mar-12 34 354 Apr-12 34 354 May-12 35 370 Jun-12 34 360 Jul-12 33 369 Aug-12 31 375 Sep-12 30 385 Oct-12 29 358 Nov-12 28 392 Dec-12 28 399 Jan-13 32 446 Feb-13 36 447 Mar-13 41 444 Apr-13 43 441 May-13 40 428 Jun-13 43 470 Jul-13 33 375 Aug-13 31 381 Sep-13 31 403 Oct-13 36 444 Nov-13 32 446 Dec-13 31 433 Jan-14 33 443 Feb-14 35 420 Mar-14 39 405 Apr-14 39 403 May-14 43 451 Jun-14 38 418 Jul-14 35 402 Aug-14 36 456 Sep-14 37 470 Oct-14 38 476 Nov-14 31 442 Dec-14 35 497 Jan-15 39 515 Feb-15 45 540 Mar-15 46 480 Apr-15 48 502 May-15 47 502 Jun-15 44 480 Jul-15 43 506 Aug-15 41 518 Sep-15 35 456 Oct-15 39 482 Nov-15 36 504 Dec-15 38 546 Jan-16 39 505 Feb-16 45 517 Mar-16 50 532 Apr-16 55 576 May-16 53 571 Jun-16 50 557 Jul-16 54 628 Aug-16 46 575 Sep-16 44 558 Oct-16 46 575 Nov-16 40 571 Dec-16 39 561 Jan-17 45 578 Feb-17 51 601 Mar-17 61 643 Apr-17 56 604 May-17 57 627 Jun-17 56 612 Jul-17 48 553 Aug-17 45 550 Sep-17 50 622 Oct-17 49 625 Nov-17 50 718 Dec-17 45 658 Jan-18 48 610 Feb-18 54 644 Mar-18 66 680 Apr-18 61 658 May-18 62 680 Jun-18 56 598 Jul-18 52 600 Aug-18 47 582 Sep-18 46 584 Oct-18 43 546 Nov-18 44 618 Dec-18 38 566 Jan-19 49 628 Feb-19 57 675 Mar-19 68 721 Apr-19 64 689 May-19 56 619 Jun-19 66 711 Jul-19 55 636 Aug-19 57 677 Sep-19 56 706 Oct-19 55 703 Nov-19 50 700 Dec-19 49 733 Jan-20 59 756 Feb-20 63 730 Mar-20 59 623 Apr-20 52 582 May-20 64 704 Jun-20 79 839 Jul-20 85 972 Aug-20 81 977 Sep-20 77 971 Oct-20 78 969 Nov-20 61 865 Dec-20 63 943 Jan-21 77 993 Feb-21 70 823 Mar-21 83 873 Apr-21 74 796 May-21 65 733 Jun-21 61 683 Jul-21 63 712 Aug-21 57 702 Sep-21 65 800
Year | undergrad enrollment | total LSUS credit hour production | undergrad tuition and fees |
2000 | 3,422 | 90,624 | $1,025 |
2001 | 3,419 | 94,446 | $1,150 |
2002 | 3,543 | 96,039 | $1,184 |
2003 | 3,655 | 101,352 | $1,442 |
2004 | 3,910 | 101,868 | $1,545 |
2005 | 3,940 | 100,181 | $1,621 |
2006 | 3,594 | 92,486 | $1,667 |
2007 | 3,556 | 92,123 | $1,667 |
2008 | 3,903 | 94,639 | $1,751 |
2009 | 4,220 | 101,972 | $1,867 |
2010 | 4,058 | 98,137 | $2,062 |
2011 | 4,134 | 98,372 | $2,247 |
2012 | 4,124 | 93,163 | $2,472 |
2013 | 3,674 | 85,292 | $2,803 |
2014 | 3,202 | 87,907 | $3,084 |
2015 | 2775 | 91021 | $3,355 |
2016 | 2587 | 94077 | $3,417 |
2017 | 2637 | 115340 | $3,417 |
2018 | 2511 | 137467 | $3,663 |
2019 | 2577 | 165057 | $3,663 |
2020 | 2553 | 191712 | $3,663 |
date | US NSA month | US SA year | |
Jan-04 | 89 | 1165 | |
Feb-04 | 102 | 1159 | |
Mar-04 | 123 | 1276 | |
Apr-04 | 109 | 1186 | |
May-04 | 115 | 1241 | |
Jun-04 | 105 | 1180 | |
Jul-04 | 96 | 1088 | |
Aug-04 | 102 | 1175 | |
Sep-04 | 94 | 1214 | |
Oct-04 | 101 | 1305 | |
Nov-04 | 84 | 1179 | |
Dec-04 | 83 | 1242 | |
Jan-05 | 92 | 1203 | |
Feb-05 | 109 | 1319 | |
Mar-05 | 127 | 1328 | |
Apr-05 | 116 | 1260 | |
May-05 | 120 | 1286 | |
Jun-05 | 115 | 1274 | |
Jul-05 | 117 | 1389 | |
Aug-05 | 110 | 1255 | |
Sep-05 | 99 | 1244 | |
Oct-05 | 105 | 1336 | |
Nov-05 | 86 | 1214 | |
Dec-05 | 87 | 1239 | |
Jan-06 | 89 | 1174 | |
Feb-06 | 88 | 1061 | |
Mar-06 | 108 | 1116 | |
Apr-06 | 100 | 1123 | |
May-06 | 102 | 1086 | |
Jun-06 | 98 | 1074 | |
Jul-06 | 83 | 965 | |
Aug-06 | 88 | 1035 | |
Sep-06 | 80 | 1016 | |
Oct-06 | 74 | 941 | |
Nov-06 | 71 | 1003 | |
Dec-06 | 71 | 998 | |
Jan-07 | 66 | 891 | |
Feb-07 | 68 | 828 | |
Mar-07 | 80 | 833 | |
Apr-07 | 83 | 887 | |
May-07 | 79 | 842 | |
Jun-07 | 73 | 793 | |
Jul-07 | 68 | 778 | |
Aug-07 | 60 | 699 | |
Sep-07 | 53 | 686 | |
Oct-07 | 57 | 727 | |
Nov-07 | 45 | 641 | |
Dec-07 | 44 | 619 | |
Jan-08 | 44 | 627 | |
Feb-08 | 48 | 593 | |
Mar-08 | 49 | 535 | |
Apr-08 | 49 | 536 | |
May-08 | 49 | 504 | |
Jun-08 | 45 | 487 | |
Jul-08 | 43 | 477 | |
Aug-08 | 38 | 435 | |
Sep-08 | 35 | 433 | |
Oct-08 | 32 | 393 | |
Nov-08 | 27 | 389 | |
Dec-08 | 26 | 377 | |
Jan-09 | 24 | 336 | |
Feb-09 | 29 | 372 | |
Mar-09 | 31 | 339 | |
Apr-09 | 32 | 337 | |
May-09 | 34 | 376 | |
Jun-09 | 37 | 393 | |
Jul-09 | 38 | 411 | |
Aug-09 | 36 | 418 | |
Sep-09 | 30 | 386 | |
Oct-09 | 33 | 396 | |
Nov-09 | 26 | 375 | |
Dec-09 | 24 | 352 | |
Jan-10 | 24 | 345 | |
Feb-10 | 27 | 336 | |
Mar-10 | 36 | 381 | |
Apr-10 | 41 | 422 | |
May-10 | 26 | 280 | |
Jun-10 | 28 | 305 | |
Jul-10 | 26 | 283 | |
Aug-10 | 23 | 282 | |
Sep-10 | 25 | 317 | |
Oct-10 | 23 | 291 | |
Nov-10 | 20 | 287 | |
Dec-10 | 23 | 326 | |
Jan-11 | 21 | 307 | |
Feb-11 | 22 | 270 | |
Mar-11 | 28 | 300 | |
Apr-11 | 30 | 310 | |
May-11 | 28 | 305 | |
Jun-11 | 28 | 301 | |
Jul-11 | 27 | 296 | |
Aug-11 | 25 | 299 | |
Sep-11 | 24 | 304 | |
Oct-11 | 25 | 316 | |
Nov-11 | 23 | 328 | |
Dec-11 | 24 | 341 | |
Jan-12 | 23 | 335 | |
Feb-12 | 30 | 366 | |
Mar-12 | 34 | 354 | |
Apr-12 | 34 | 354 | |
May-12 | 35 | 370 | |
Jun-12 | 34 | 360 | |
Jul-12 | 33 | 369 | |
Aug-12 | 31 | 375 | |
Sep-12 | 30 | 385 | |
Oct-12 | 29 | 358 | |
Nov-12 | 28 | 392 | |
Dec-12 | 28 | 399 | |
Jan-13 | 32 | 446 | |
Feb-13 | 36 | 447 | |
Mar-13 | 41 | 444 | |
Apr-13 | 43 | 441 | |
May-13 | 40 | 428 | |
Jun-13 | 43 | 470 | |
Jul-13 | 33 | 375 | |
Aug-13 | 31 | 381 | |
Sep-13 | 31 | 403 | |
Oct-13 | 36 | 444 | |
Nov-13 | 32 | 446 | |
Dec-13 | 31 | 433 | |
Jan-14 | 33 | 443 | |
Feb-14 | 35 | 420 | |
Mar-14 | 39 | 405 | |
Apr-14 | 39 | 403 | |
May-14 | 43 | 451 | |
Jun-14 | 38 | 418 | |
Jul-14 | 35 | 402 | |
Aug-14 | 36 | 456 | |
Sep-14 | 37 | 470 | |
Oct-14 | 38 | 476 | |
Nov-14 | 31 | 442 | |
Dec-14 | 35 | 497 | |
Jan-15 | 39 | 515 | |
Feb-15 | 45 | 540 | |
Mar-15 | 46 | 480 | |
Apr-15 | 48 | 502 | |
May-15 | 47 | 502 | |
Jun-15 | 44 | 480 | |
Jul-15 | 43 | 506 | |
Aug-15 | 41 | 518 | |
Sep-15 | 35 | 456 | |
Oct-15 | 39 | 482 | |
Nov-15 | 36 | 504 | |
Dec-15 | 38 | 546 | |
Jan-16 | 39 | 505 | |
Feb-16 | 45 | 517 | |
Mar-16 | 50 | 532 | |
Apr-16 | 55 | 576 | |
May-16 | 53 | 571 | |
Jun-16 | 50 | 557 | |
Jul-16 | 54 | 628 | |
Aug-16 | 46 | 575 | |
Sep-16 | 44 | 558 | |
Oct-16 | 46 | 575 | |
Nov-16 | 40 | 571 | |
Dec-16 | 39 | 561 | |
Jan-17 | 45 | 578 | |
Feb-17 | 51 | 601 | |
Mar-17 | 61 | 643 | |
Apr-17 | 56 | 604 | |
May-17 | 57 | 627 | |
Jun-17 | 56 | 612 | |
Jul-17 | 48 | 553 | |
Aug-17 | 45 | 550 | |
Sep-17 | 50 | 622 | |
Oct-17 | 49 | 625 | |
Nov-17 | 50 | 718 | |
Dec-17 | 45 | 658 | |
Jan-18 | 48 | 610 | |
Feb-18 | 54 | 644 | |
Mar-18 | 66 | 680 | |
Apr-18 | 61 | 658 | |
May-18 | 62 | 680 | |
Jun-18 | 56 | 598 | |
Jul-18 | 52 | 600 | |
Aug-18 | 47 | 582 | |
Sep-18 | 46 | 584 | |
Oct-18 | 43 | 546 | |
Nov-18 | 44 | 618 | |
Dec-18 | 38 | 566 | |
Jan-19 | 49 | 628 | |
Feb-19 | 57 | 675 | |
Mar-19 | 68 | 721 | |
Apr-19 | 64 | 689 | |
May-19 | 56 | 619 | |
Jun-19 | 66 | 711 | |
Jul-19 | 55 | 636 | |
Aug-19 | 57 | 677 | |
Sep-19 | 56 | 706 | |
Oct-19 | 55 | 703 | |
Nov-19 | 50 | 700 | |
Dec-19 | 49 | 733 | |
Jan-20 | 59 | 756 | |
Feb-20 | 63 | 730 | |
Mar-20 | 59 | 623 | |
Apr-20 | 52 | 582 | |
May-20 | 64 | 704 | |
Jun-20 | 79 | 839 | |
Jul-20 | 85 | 972 | |
Aug-20 | 81 | 977 | |
Sep-20 | 77 | 971 | |
Oct-20 | 78 | 969 | |
Nov-20 | 61 | 865 | |
Dec-20 | 63 | 943 | |
Jan-21 | 77 | 993 | |
Feb-21 | 70 | 823 | |
Mar-21 | 83 | 873 | |
Apr-21 | 74 | 796 | |
May-21 | 65 | 733 | |
Jun-21 | 61 | 683 | |
Jul-21 | 63 | 712 | |
Aug-21 | 57 | 702 | |
Sep-21 | 65 | 800 | |
1. Let's examine the history of LSUS undergraduate enrollment vs. its tuition and fees. Download the "A3Q1 LSUS enrollment data" Excel file; in it you will see historical information on LSUS undergraduate enrollment, total credit hour production, and (12-hour, undergraduate) tuition and fees. (If you wish, you can verify or look up additional information hereandhere.)
Calculate annual elasticities for both types of quantity variables (i.e., you will have an elasticity of price vs. headcount, and one of price vs. credit hour). You will get an error message in your calculations when the tuition doesn't change (like in 2006-2007), since the elasticity calculation will be trying to divide by zero; just delete those error values in your Excel table so that the cells are blank. The first headcount elasticity will be calculated based on the 2000 and 2001 values of tuition and headcount and should be about -0.008; the first credit hour elasticity will also be based on the 2000 and 2001 values and should be about 0.359). Calculate the average annual elasticity for headcount (from 2000-2020), and the average annual elasticity for credit hour (from 2000-2020).
Many administrators argue that, to increase revenue to LSUS to cover budget shortfalls, tuition should be raised. Comment on this suggestion, using the evidence you've uncovered.
2. Copy and paste the following data into Excel:
P | Q |
$95.00 | 2855 |
$91.20 | 3024 |
$90.25 | 3119 |
$89.30 | 3179 |
$86.45 | 3239 |
$85.50 | 3332 |
$82.65 | 3386 |
$78.85 | 3423 |
a. Run OLS to determine the demand function as P = f(Q); how much confidence do you have in this estimated equation? Use algebra to invert the demand function to Q = f(P).
b. Using calculus to determine dQ/dP, construct a column which calculates the point-price elasticity for each (P,Q) combination.
c. What is the point price elasticity of demand when P=$90.25? What is the point price elasticity of demand when P=$79.00?
d. To maximize total revenue, what would you recommend if the company was currently charging P=$89.30? If it was charging P=$79.00?
e. Use your first demand function to determine an equation for TR and MR as a function of Q, and create a graph of P and MR on the vertical and Q on the horizontal axis.
f. What is the total-revenue maximizing price and quantity, and how much revenue is earned there? (Round your price to the nearest cent, your quantity to the nearest whole unit, and your TR to the nearest dollar.) Compare that to the TR when P = $90.25 and P = $79.00.
3. Let's practice time-series forecasting of new home sales. Click here (https://www.census.gov/construction/nrs/historical_data/index.html) to see the newest data in the first table: Houses Sold (Excel file is sold_cust.xls). Look at the monthly data on the "Reg Sold" tab. If you have trouble with the link, I have recreated the data in moodle in the Excel file "A3Q3 Census Housing Data."
Only keep the dates beginning in January 2004, so delete the earlier observations, and use the data through September 2021. Keep only the US data, both the seasonally unadjusted monthly (column B) and the seasonally adjusted annual (column G). Make a new column of seasonally adjusted monthly by dividing the annual data by 12. Make a column called "t" where t will go from 1 (Jan. 2004) to 213 (September 2021); make a t2 column too (since, if you look at the data, you can see sales are U-shaped; hence the quadratic). Also make a column "D" that is a dummy variable equal to one during the spring and summer months of March through August.
Determine the correlation between the unadjusted and the adjusted monthly data (=CORREL(unadjust., adjust.) in Excel), and produce scatterplots (with straight lines) of both. Do you think making a seasonal adjustment will be useful, given what you observe at this point?
Run four regressions: 1) seasonally unadjusted monthly as the dependent, and t and t2 as the independents, 2) seasonally unadjusted monthly as the dependent, and t, t2, and D as the independents, 3) seasonally adjusted monthly as the dependent, and t and t2 as the independents, and 4) seasonally adjusted monthly as the dependent, and t, t2, and D as the independents. Discuss your findings, and determine which of the four models is the best for forecasting new home sales. When interpreting your p-values, remember that, say, 1.0E-08 is 1.0 * 10^-8, which is 0.00000001. State the equation that would be used to forecast sales.
4. Your company, which specializes in porcine hygiene products (HogWash), has the following demand function:
Q = a + bP + cM + dR
where Q is the quantity demanded of HogWash's most popular soap for pigs, P is the price of that product, M is consumer income, and R is the price of a related product. The regression results are:
Adjusted R Square | 0.8300 | |||
Independent Variables | Coefficients | Standard Error | t Stat | P-value |
Intercept | 10,622.29 | 67.06 | 158.40 | 6.73E-48 |
P | -9.741 | 2.157 | -4.516 | 0.000 |
M | -0.0053 | 0.001 | -3.862 | 0.001 |
R | 2.15 | 0.959 | 2.238 | 0.032 |
- Discuss whether you think these regression results will generate good sales estimates for HogWash.
Now assume that the income is $58,717, the price of the related good is $9.35, and HogWash chooses to set the price of its product at $12.75.
b. What is the estimated number of units sold given the data above? (round to nearest unit; no decimals)
c. What are the values for the own-price, income, and cross-price elasticities?
d. If P increases by 5%, what would happen (in percentage terms) to quantity demanded?
e. If M increases by 3%, what would happen (in percentage terms) to quantity demanded?
f. If R decreases by 4%, what would happen (in percentage terms) to quantity demanded?
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