A Researcher Analyzes the Factors That May Influence Amusement Park

question 120

Multiple Choice

A researcher analyzes the factors that may influence amusement park attendance and estimates the following model: Attendance = β₀ + β₁ Price + β₂ Rides + ε,where Attendance is the daily attendance (in 1,000s) ,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
Price* = Price - 85 and Rides* = Rides - 30.A portion of the regression results is shown in the accompanying table. According to the modified model,which of the following is a 95% confidence interval for expected Attendance when Price andRides equal $85 and 30,respectively? (Note that t_0,025,27 = 2.052. )

• A) [12,740,56,780]
• B) [16,330,53,450]
• C) [26,080,42,740]
• D) [28,900,41,500]

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Definitions:

Confidence Interval

A scale of values, originating from sample statistical analysis, projected to house the value of an undetermined population parameter.

Standard Deviation

A quantification of the degree to which a set of values is spread out or dispersed, indicating the extent of deviation from the average value.

Confidence Interval

A set of values that comes from sample statistics, expected to encompass the value of a parameter from an unknown population.

Sample Mean

The average value calculated from a sample of data, representing the central tendency of the sample.