For the situation and variables in Exercise 17.7, fit an exponential model and use it to estimate the average room rate for a market in which the average occupancy rate is 70%. The underlying data are in file XR17007.
In exercise
A travel research firm has reported average occupancy and room rates for hotels in 26 U.S. hotel markets. The data are also in file XR17007. For y = average room rate (dollars) and x = average occupancy rate (percent), fit a second-order polynomial model to the data and determine the percentage of the variation in average room rates that is explained by the model. Given the nature of these variables, comment on causation possibilities that might be present.