THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION:
The director of a local tourist board is interested in determining the factors that influence the hotel occupancy rate in his city each month.Hotel occupancy can be measured as the percentage of available hotel rooms that are occupied by paying customers.He develops the model: lnY = β 0 + β 1 lnX 1 + β 2 lnX 2 + β 3 lnX 3 + β 4 X 4 + ε,where Y is the hotel occupancy rate (as a percentage),X 1 is the total number of passengers arriving at the airport (measured in thousands),X 2 is an average 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.He looks at the data from the past 36 months and obtains ln
= 4.2 + 1.23lnx 1 - 2.2lnx 2 + 0.34ln x 3 + 2.3x 4 and R 2 = 0.63.
-What would you forecast the occupancy rate to be this July when we expect 525,000 visitors? We would anticipate the room rate to average $130 and consumer confidence to be 110.

Question

THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION:
The director of a local tourist board is interested in determining the factors that influence the hotel occupancy rate in his city each month.Hotel occupancy can be measured as the percentage of available hotel rooms that are occupied by paying customers.He develops the model: lnY = β 0  + β 1 lnX 1 + β 2 lnX 2 + β 3 lnX 3 + β 4 X 4  + ε,where Y is the hotel occupancy rate (as a percentage),X 1 is the total number of passengers arriving at the airport (measured in thousands),X 2 is an average 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.He looks at the data from the past 36 months and obtains ln  
= 4.2 + 1.23lnx 1 - 2.2lnx 2 + 0.34ln x 3  + 2.3x 4 and R 2 = 0.63.
-What would you forecast the occupancy rate to be this July when we expect 525,000 visitors? We would anticipate the room rate to average $130 and consumer confidence to be 110.

Quizplus · Accepted Answer

The Answer of THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION:
The director of a local tourist board is interested in determining the factors that influence the hotel occupancy rate in his city each month.Hotel occupancy can be measured as the percentage of available hotel rooms that are occupied by paying customers.He develops the model: lnY = β 0  + β 1 lnX 1 + β 2 lnX 2 + β 3 lnX 3 + β 4 X 4  + ε,where Y is the hotel occupancy rate (as a percentage),X 1 is the total number of passengers arriving at the airport (measured in thousands),X 2 is an average 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.He looks at the data from the past 36 months and obtains ln  
= 4.2 + 1.23lnx 1 - 2.2lnx 2 + 0.34ln x 3  + 2.3x 4 and R 2 = 0.63.
-What would you forecast the occupancy rate to be this July when we expect 525,000 visitors? We would anticipate the room rate to average $130 and consumer confidence to be 110.