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

question 83

Essay

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).

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Definitions:

Clever Hans Effect

The phenomenon where a person or animal in a study can pick up on subtle, unintentional cues from their interactants, leading to seemingly intelligent responses.

Visual Cues

Environmental or situational indicators that are perceived visually, guiding behavior through visual information.

Subtle

Describing something so delicate or precise as to be difficult to analyze or describe; often implies complexity.

Spatial Reasoning

The ability to understand, reason, and remember the spatial relations among objects or space.