1. Administrators at State University believe that decreases in the number of freshman applications that they have experienced are directly related to tuition increases. They have collected the following enrollment and tuition data for the last decade.
Year Freshman Annual
Applications Tuition ($)
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
2. Develop a linear trend line model for the freshman applications data at State University in problem 1.
a. Does this forecast appear to be more or less accurate than the linear regression forecast developed in problem 1? Justify your answer.
b. Compute the correlation coefficient for the linear trend line forecast and explain its meaning.