Chasewood Apartments

In Problem 7, Joan Newman has just completed a simple regression analysis of the relationship between university enrollment and the number of apartment units leased. Ms. Newman suspects that the number of units leased might also be affected by the average apartment lease price charged. She has collected the following information:

Assignment

Use the POM Software Library, which accompanies this book, to help you answer these questions:

1. If you have not done so in Problem 7, perform a simple regression analysis to forecast the number of apartment units leased, based only on university enrollment. What is your forecast if enrollment is expected to be 6,600 students? What percentage of variation in number of units leased is explained by university enrollment? Evaluate the goodness of this forecasting model.
2. Perform a simple regression analysis to forecast the number of apartment units leased, based only on average lease price. What is your forecast if the average lease price is to be $455 ? What percentage of variation in number of units leased is explained by average lease price? Evaluate the goodness of this forecasting model.
3. Perform a multiple regression analysis to forecast the number of apartment units leased, based both on university enrollment and average lease price. What is your forecast if university enrollment is expected to be 6,500 students and the average lease price is to be $465? What percentage of variation in number of units leased is explained by this model? Evaluate the goodness of this forecasting model.
4. Which forecasting model above would you recommend to Joan Newman? Why?
5. Based on your multiple regression model and forecast from Part 3 , what would be the net financial impact if the apartment lease price were increased by $6? What is your recommendation on setting apartment lease prices?

Price: $10.24

Solution: The downloadable solution consists of 5 pages, 524 words and 4 charts.
Deliverable: Word Document