THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION

question 188

Essay

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 = β₀ + β₁lnX₁ + β₂lnX₂ + β₃lnX₃ + β₄X₄ + ε,where Y is the hotel occupancy rate (as a percentage),X₁ is the total number of passengers arriving at the airport (measured in thousands),X₂ is an average of local hotel room rates,X₃ is the consumer confidence index,and X₄ 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 + 1.23lnx₁ - 2.2lnx₂ + 0.34ln x₃ + 2.3x₄ and R² = 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.

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Definitions:

Monozygotic

Referring to twins who have developed from a single fertilized egg, making them genetically identical.

Single Egg

Single egg refers to the result of one egg being fertilized during conception, leading to the development of one embryo, which can result in a singleton pregnancy.

Infertility

The inability to conceive a child after one year of regular, unprotected sexual intercourse.

Irregular Ovulation

Occurs when the release of eggs from the ovaries is unpredictable or does not happen at consistent intervals.