Senior Management at Esil University believes that decreases in the number of undergraduate applications that they have experienced are directly related to tuition increases. They have collected the following enrollment and tuition fees data for the past decade:
Year: Undergraduate Applications: Annual Tuition Fees(GBP)
1 6,050 3,600
2 4,060 3,600
3 5,200 4,000
4 4,410 4,400
5 4,380 4,500
6 4,160 5,700
7 3,560 6,000
8 2,970 6,000
9 3,280 7,500
10 3,430 8,000
Problem:
a)Develop a linear regression model for these data and forecast the number of applications for Esil University if tuition fees increase to 9000 gbp per year and if tuition fees are lowered to 7000 gbp per year.
b)Determine the strength of the linear relationship between undergraduate applications ad tuition fees by using correlation.
c)Describe the various decisions for Esil University that would be affected by the forecast for undergraduate applications.
d)Develop an exponential smoothing model with a=0.20 for these data to forecast undergraduate applications in year 11 and compare its accuracy to the forecast developed in part a).