A Hurricane Was Expected in the Vicinity of a Hotel

question 7

Multiple Choice

A hurricane was expected in the vicinity of a hotel. The police ordered everyone within a 25-mile radius to evacuate, and television stations broadcast the plans for evacuation. The hotel ignored the warnings and did not inform its guests of the evacuation directive. As a result, the hurricane caused extensive damage to guests' property. Is the hotel liable for the loss under these circumstances?

• A) No, a hotel is not liable when the cause of the damage was an act of God.
• B) No, a hotel has no liability for guests' property.
• C) Yes, a hotel is liable when it could have avoided the damage by the exercise of reasonable care.
• D) Yes, a hotel is absolutely liable for all loss caused to guests' property when they are at the inn.

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Definitions:

Multicollinearity

A statistical phenomenon in which two or more predictor variables in a multiple regression model are highly correlated, potentially affecting the reliability of the model's estimates.

Independent Variables

Variables in statistical or mathematical modeling that can be manipulated or chosen by the researcher to investigate their effect on dependent variables.

Regression Coefficient

A value that represents the degree of change in the dependent variable for a one-unit change in an independent variable within a regression model.

Dependent Variable

In statistical modeling and experimental design, the variable being tested and measured, which is expected to change in response to changes in independent variables.