The chancellor of a small regional college is concerned about the declining freshman enrollment at his college. A number of factors have contributed to the decline, but the chancellor believes it is directly related to annual tuition increases. He has collected the following data for the past 8 years. year Freshman Enrollment Annual Tuition (In US dollars) 1 6,550 32,000 2 6,230 37,000 3 5,980 45,200 4 5,540 45,700 5 4,960 46,200 6 4,630 46,700 7 4,520 52,200 8 4,220 57,700 a Develop a linear regression equation for forecasting freshman enrollment as a function of the annual tuition. b Forecast freshman enrollment if the annual tuition increases by US$9,000 in Year 9. c Evaluate the "goodness of fit" of the regression equation by computing the values of R2, r, and Syx and interpret the results.
Problem 17 page 552
The chancellor of a small regional college is concerned
about the declining freshman enrollment at his college.
A number of factors have contributed to the decline, but
the chancellor believes it is directly related to annual
tuition increases. He has collected the following data for
the past 8 years.
year Freshman
Enrollment
Annual
Tuition (In US
dollars)
1 6,550 32,000
2 6,230 37,000
3 5,980 45,200
4 5,540 45,700
5 4,960 46,200
6 4,630 46,700
7 4,520 52,200
8 4,220 57,700
a Develop a linear regression equation for forecasting
freshman enrollment as a function of the annual tuition.
b
increases by US$9,000 in Year 9.
c Evaluate the "goodness of fit" of the regression
equation by computing the values of R2, r, and Syx and
interpret the results.
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