Exhibit 15-4.A researcher analyzes the factors that may influence amusement park attendance and estimates the following model: , where Attendance is the daily attendance (in 1000s),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 and .A portion of the regression results is shown in the accompanying table. Refer to Exhibit 15-4.According to the modified model,what is the predicted value for Attendance when Price and Rides equal $85 and 30,respectively.
A)25,670
B)34,410
C)40,910
D)55,600

Question

Exhibit 15-4.A researcher analyzes the factors that may influence amusement park attendance and estimates the following model:  , where Attendance is the daily attendance (in 1000s),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  and  .A portion of the regression results is shown in the accompanying table.  Refer to Exhibit 15-4.According to the modified model,what is the predicted value for Attendance when Price and Rides equal $85 and 30,respectively.
A)25,670 
B)34,410 
C)40,910 
D)55,600

Quizplus · Accepted Answer

According to the modified model, the predicted value for Attendance when Price= $85 and Rides= 30 is given by

Predicted Attendance = 29,248.315 + (−153.447)($85) + 511.284(30) = 34,409.985 ≈ 34,410.

Therefore, the best choice is B.