Jasmine owns 12 apartment buildings in a college town, which it rents exclusively to students. Each apartment building contains 120 rental units, but the owner is having cash flow problems due to an average vacancy rate of nearly 50 percent. The apartments in each building have comparable floor plans, but some buildings are closer to campus than others. Jasmine’s accumulated data from last year on the number of apartments rented, the rental price (in dollars), and the amount spent on advertising (in hundreds of dollars) at each of the 12 apartments are available below. These data, along with the distance (in miles) from each apartment building to campus, are presented below. Jasmine is looking for an expert advice on the available data to inform administrative and business policy. By applying the knowledge gain from PADM 563 class, kindly help her regress the quantity demanded of her apartments on price, advertising, and distance by using either Excel or SPSS or Gretl. A. Based on the regression output estimate the associated demand function for Jasmine’s rental units? B. If Jasmine raised rents at one complex by $100, what would you expect to happen to the number of units rented? C. If Jasmine raised rents at an average apartment building, what would happen to her total revenues? D. What inferences should be drawn from this data analysis to assist Jasmine to make a rational managerial decision?
Jasmine owns 12 apartment buildings in a college town, which it rents exclusively to students. Each apartment building contains 120 rental units, but the owner is having cash flow problems due to an average vacancy rate of nearly 50 percent. The apartments in each building have comparable floor plans, but some buildings are closer to campus than others. Jasmine’s accumulated data from last year on the number of apartments rented, the rental price (in dollars), and the amount spent on advertising (in hundreds of dollars) at each of the 12 apartments are available below. These data, along with the distance (in miles) from each apartment building to campus, are presented below. Jasmine is looking for an expert advice on the available data to inform administrative and business policy. By applying the knowledge gain from PADM 563 class, kindly help her regress the quantity demanded of her apartments on price, advertising, and distance by using either Excel or SPSS or Gretl.
A. Based on the regression output estimate the associated demand
B. If Jasmine raised rents at one complex by $100, what would you expect to happen to the number of units rented?
C. If Jasmine raised rents at an average apartment building, what would happen to her total revenues?
D. What inferences should be drawn from this data analysis to assist Jasmine to make a rational managerial decision?
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