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Chasewood Apartments, Independent, Dependent Variables, Linear Regression, Relationship, Forecast.

Chasewood Apartments is a 300-unit complex near Fairway University that attracts mostly university students. The manager has collected the following data and wants to project the number of units leased in Semester 9 using simple linear regression. Here is the information that has been collected:

Semester University Enrollment
(in thousands) Average Lease Price
($) Number of Units
Leased
l 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

In answering these questions, you must identify and use the correct independent and dependent variables.

a) The apartment manager wants to forecast the Number of Units Leased as a function of time. What is the linear regression relationship the manager should use and what is the forecast for the Number of Units Leased for Semester 9'?

b) Suppose the manager believes that the Number of Units Leased is a function only of University Enrollment. What is the linear regression relationship the manager should use and what is the forecast for the Number o{Units Leased for Semester 9 if the enrollment is expected to 6,700 students for Semester 9'?

c) Suppose the manager believes that the Number of Units Leased is a function only of the Average Lease Price. What is the linear regression relationship the manager should use and what is the forecast for the Number of Units Leased for Semester 9 if the forecast for the Average
Lease Price is $460 for Semester 9?

d) Considering the strength of each of the relationships that you found in pa1is a) through c), would you use any of these to forecast the Number of Units Leased for Semester 9? Explain your answer.

Solution Preview

TUTORIAL:

Chasewood Apartments is a 300-unit complex near Fairway University that attracts mostly university students. The manager has collected the following data and wants to project the number of units leased in Semester 9 using simple linear regression. Here is the information that has been collected:

Semester University Enrollment
(in thousands) Average Lease Price
($) Number of Units
Leased
l 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

In answering these questions, you must identify and use the correct independent and dependent variables.

a) The apartment manager wants to forecast the Number of Units Leased as a function of time. What is the linear regression relationship the manager should use and what is the forecast ...

Solution Summary

Your tutorial is 242 words of discussion, including indicating the dependent and independent variables and discussing the strength of the relationships among the variables. Three regressions are completed in Excel for you as well as three graphs to give you a visual of the relationships of the three independent variables on units leased.

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