A researcher analyzes the factors that may influence amusement park attendance and estimates the following model: Attendance = β₀ + β₁Price + β₂Rides + ε, where Attendance is the daily attendance (in 1,000s), Price is the gate price (in $), and Rides is the number of rides at the amusement park. The researcher would like to construct interval estimates for Attendance when Price and Rides equal $85 and 30, respectively. The researcher estimates a modified model where Attendance is the response variable and the explanatory variables are now defined as Price* = Price - 85 and Rides* = Rides - 30. A portion of the regression results is shown in the accompanying table. According to the modified model, which of the following is a 95% prediction interval for Attendance when Price and Rides equal $85 and 30, respectively? (Note that t_0.025,27 = 2.052.) A) [12,740, 56,080] B) [16,330, 53,450] C) [26,080, 42,740] D) [28,900, 41,500]

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The Answer of A researcher analyzes the factors that may influence amusement park attendance and estimates the following model: Attendance = β₀ + β₁Price + β₂Rides + ε, where Attendance is the daily attendance (in 1,000s), Price is the gate price (in $), and Rides is the number of rides at the amusement park. The researcher would like to construct interval estimates for Attendance when Price and Rides equal $85 and 30, respectively. The researcher estimates a modified model where Attendance is the response variable and the explanatory variables are now defined as Price* = Price - 85 and Rides* = Rides - 30. A portion of the regression results is shown in the accompanying table. According to the modified model, which of the following is a 95% prediction interval for Attendance when Price and Rides equal $85 and 30, respectively? (Note that t_0.025,27 = 2.052.) A) [12,740, 56,080] B) [16,330, 53,450] C) [26,080, 42,740] D) [28,900, 41,500]

A Researcher Analyzes the Factors That May Influence Amusement Park