In a recent survey, ice cream truck drivers in Cincinnati, Ohio, reported that they make about $280 in income on a typical summer day. The income was generally higher on days with longer work hours, particularly hot days, and on holidays. Irma follows an ice cream truck driver for five weeks. She collects the information on the driver’s daily income (Income), number of hours on the road (Hours), whether it was a particularly hot day (Hot = 1 if the high temperature was above 85°F, 0 otherwise), and whether it was a Holiday (Holiday = 1, 0 otherwise). A portion of the data is shown in the accompanying table. 

a. Estimate and interpret the effect of Hours, Hot, and Holidays on Income. Predict the income of a driver working 6 hours on a hot holiday. What if it was not a holiday? 

b. Extend the above model to include the interaction between Hot and Holiday. Predict the income of a driver working 6 hours on a hot holiday. What if it was not a holiday?

Transcribed Image Text:

Income 196 282 ⠀ 374 Hours 5 8 ⠀ 6 Hot 1 0 ⠀ 1 Holiday 0 0 1 1