(Solution) For this case assignment we are going to look at housing - #80189
Module 05 - Case Assignment
Housing Starts II
For this case assignment we are going to look at housing starts again but this time we are going to add another variable to the equation. Read the short article below concerning lumber prices. Then I would like you to compute the multiple regression formula using the interest rates, lumber prices, and number of housing starts provided below. Once you have computed your multiple regression formula answer the following questions.
What is the regression formula that you computed?
What would the approximate number of housing starts be at the following interest rates and lumber prices:
9.0% at $1.00 per board foot
8.5% at $1.50 per board foot
5.5% at $1.25 per board foot
4.5% at $0.90 per board foot
3.7% at $1.00 per board foot
2.3% at $0.75 per board foot.
NOTE: Use Excel to assist you with the calculations. Input the above data in an Excel spreadsheet and input your multiple regression formula using the data cells as the variables. Excel can then automatically compute the results.
If you were the owner of a business in the housing construction sector how would this information affect your decisions?
Anonymous (Jun 16, 2003) Lumber Prices Continue To Tumble ENR. New York: . Vol. 250, Iss. 23; p. 28
Housing Starts in Relation to Interest Rates and Lumber Prices
Interest Rate Price Per Board Foot Housing Starts
11% $1.25 8,500
11% $1.00 9,000
11% $0.90 9,200
11% $0.75 9,500
10% $1.25 9,700
10% $1.00 10,000
10% $0.90 10,300
9% $1.25 22,000
9% $1.00 24,000
8% $1.25 39,000
8% $0.90 45,000
8% $0.75 52,000
Click HERE to compute your multiple regression formula. (Use the multiple regression equation to compute your formula. NOTE: Enter percentages as .08, .09, .10, etc.)
Write a 3-4 page paper answering the above question. Please turn this in to me by the end of this module.
Deliverable: Word Document
and pdf
