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Impact of Tuition Increases on Enrollment

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There is a negative relationship between tuition and enrollment There is a greater negative relationship between employment and enrollment There is a negative relationship between wages and enrollment Number of high school graduates and tuition of other universities is statistically insignificant Regression analysis was computed using Alabama 4 year public universities Analysis was also computed excluding University of Alabama and Auburn University

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Dependent Variable: log(enrollment) (1)(2)(3)(4)(5) Log(Tuition)-.358 (.16)* (.14)** -.46 (.16)** (.16)** (.16)** Log(AvEmp)-1.68 (.22)** (.22)** (.22)** (.23)** Log(AvgWage)-.766 (.33)* -.75 (.33)* (.33)* Log(HighSchool).156 (.16).154 (.16) Log(TuitComp).026 (.24) N168 Adj. R-Squared

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Dependent Variable: log(enrollment) - University of Alabama and Auburn Main Campus removed (1)(2)(3)(4)(5) Log(Tuition)-.464 (.16)** (.14)** (.16)** (.16)** (.16)** Log(AvEmp)-1.65 (.21)** (.22)** (.22)** (.23)** Log(AvgWage)-.634 (.32) -.62 (.32) (.32) Log(HighSchool).145 (.15).136 (.15) Log(TuitComp).109 (.23) N144 Adj. R-Squared

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Summation 1% Increase in Tuition Enrollment decreases.55% $87.5 increase enrollment decreases by 28 students Revenue: If tuition increases 1% then revenue increases.45% Caveat—Freshmen and Sophomores have a more elastic demand than Juniors and Seniors risking the loss of 3-4 years of tuition rather than just 1-2 years Enrollment has remained relatively stable around the 5000 student range for the majority of the study Withholding some relatively large increase in tuition, it is predicted enrollment will remain around tuition increased by 3.77% resulting in decrease of enrollment by less than 1%

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