THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION:
As director of the local tourist board,you are interested in determining the factors that influence the hotel occupancy rate in your city each month.Hotel occupancy can be measured as the percentage of available hotel rooms that are occupied by paying customers.You develop the following model: Y = β 0 + β 1 X 1 + β 2 X 2 + β 3 X 3 + β 4 X 4 + ε,where Y is the hotel occupancy rate,X 1 is the total number of passengers arriving at the airport,X 2 is a price index of local hotel room rates,X 3 is the consumer confidence index,and X 4 is a dummy variable = 1 during the months of June,July,and August.You look at data from the past 36 months and obtain the following results:
= 67.1 + 0.02x 1 - 0.055x 2 + 0.08x 3 + 12.3x 4 ,R 2 = 0.67,
= 58.3,
= 0.008,
= 0.01,
= 0.06,
= 4.7,and SSE = 576.
-What are your hypotheses regarding this model? Explain.Are there any other variables you would have liked to include?

Question

THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION:
As director of the local tourist board,you are interested in determining the factors that influence the hotel occupancy rate in your city each month.Hotel occupancy can be measured as the percentage of available hotel rooms that are occupied by paying customers.You develop the following model: Y = β 0 + β 1 X 1 + β 2 X 2 + β 3 X 3 + β 4 X 4 + ε,where Y is the hotel occupancy rate,X 1 is the total number of passengers arriving at the airport,X 2 is a price index of local hotel room rates,X 3 is the consumer confidence index,and X 4 is a dummy variable = 1 during the months of June,July,and August.You look at data from the past 36 months and obtain the following results:  
= 67.1 + 0.02x 1 - 0.055x 2 + 0.08x 3 + 12.3x 4 ,R 2 = 0.67,  
= 58.3,  
= 0.008,  
= 0.01,  
= 0.06,  
= 4.7,and SSE = 576.
-What are your hypotheses regarding this model? Explain.Are there any other variables you would have liked to include?

Quizplus · Accepted Answer

The Answer of THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION:
As director of the local tourist board,you are interested in determining the factors that influence the hotel occupancy rate in your city each month.Hotel occupancy can be measured as the percentage of available hotel rooms that are occupied by paying customers.You develop the following model: Y = β 0 + β 1 X 1 + β 2 X 2 + β 3 X 3 + β 4 X 4 + ε,where Y is the hotel occupancy rate,X 1 is the total number of passengers arriving at the airport,X 2 is a price index of local hotel room rates,X 3 is the consumer confidence index,and X 4 is a dummy variable = 1 during the months of June,July,and August.You look at data from the past 36 months and obtain the following results:  
= 67.1 + 0.02x 1 - 0.055x 2 + 0.08x 3 + 12.3x 4 ,R 2 = 0.67,  
= 58.3,  
= 0.008,  
= 0.01,  
= 0.06,  
= 4.7,and SSE = 576.
-What are your hypotheses regarding this model? Explain.Are there any other variables you would have liked to include?