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Question
NARRBEGIN: SA_103_106La Cabaa, 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:
| Summary measures | ||||
| Multiple R | 0.5358 | |||
| R-Square | 0.2871 | |||
| Adj R-Square | 0.2223 | |||
| StErr of Estimate | 7.582 | |||
| Regression coefficients | ||||
| Coefficient | Std Err | t-value | p-value | |
| Constant | 43.118 | 11.4263 | 3.7735 | 0.0010 |
| Advertising | 0.0013 | 0.0006 | 2.4119 | 0.0247 |
| Franchise | 3.038 | 3.1759 | 0.9567 | 0.3491 |
(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 (se) for the model in (A). Answer
This answer is hidden. It contains 533 characters.
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NARRBEGIN: SA_79_80
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