La Cabaña, a popular motel chain in the southwest, is interested in developing a regression model that can predict the occupancy rate (%) of its motels. Currently, the company is interested in using two explanatory variables to predict occupancy. They want to use the amount of advertising (in $) used by each motel and if the particular location a franchised location. Some regression information is presented below:
-(A) Use the information above to estimate the linear regression model.
(B) Interpret each of the estimated regression coefficients of the regression model in (A).
(C) Would any of the variables in this model be considered a dummy variable? Explain your answer.
(D) Identify and interpret the coefficient of determination ( ) and the standard error of the estimate (s_e) for the model in (A).

Question

La Cabaña, a popular motel chain in the southwest, is interested in developing a regression model that can predict the occupancy rate (%) of its motels. Currently, the company is interested in using two explanatory variables to predict occupancy. They want to use the amount of advertising (in $) used by each motel and if the particular location a franchised location. Some regression information is presented below:

-(A) Use the information above to estimate the linear regression model.
(B) Interpret each of the estimated regression coefficients of the regression model in (A).
(C) Would any of the variables in this model be considered a dummy variable? Explain your answer.
(D) Identify and interpret the coefficient of determination (

) and the standard error of the estimate (s_e) for the model in (A).

Quizplus · Accepted Answer

The Answer of La Cabaña, a popular motel chain in the southwest, is interested in developing a regression model that can predict the occupancy rate (%) of its motels. Currently, the company is interested in using two explanatory variables to predict occupancy. They want to use the amount of advertising (in $) used by each motel and if the particular location a franchised location. Some regression information is presented below: -(A) Use the information above to estimate the linear regression model. (B) Interpret each of the estimated regression coefficients of the regression model in (A). (C) Would any of the variables in this model be considered a dummy variable? Explain your answer. (D) Identify and interpret the coefficient of determination ( ) and the standard error of the estimate (s_e) for the model in (

La Cabaña, a Popular Motel Chain in the Southwest, Is