1. Instudying the effect ofnumber of qualitative attributes on the price charged for movie admissions in a large metropolitan area for the periode 1964-1964, R.L. Lampson obtained the following regression for the year 1961 :

Y = 4,13 + 5,77D1 + 8,21D2 - 7,68D3 - 1,13D4 + 27,09D5 + 31,46X1 + 0,81X2

(2,04)(2,67)(2,51)(1,78)(3,58)(13,78)(0,17)

R2 = 0,961 : N =40

= 10% ; /2 =5%

Where :

D1 = Theater lpcation; 1 if suburban,0 if city center

D2 = Theater age; 1 if less than 10 year sice contruction or majar renovation, 0 otherwisw

D3 = Type of theatre; 1 if outdoor, 0 if indoor

D4 = Parking; 1 if provided, 0 otherwise

D5 = Screening policy; 1 if first run, 0 otherwise

X1 = Average percentage unused seating capacity per showing

X2 = Average filrm rental, cents per ticket charged by the distributor

Y= Adult evening admission price, cent

(a) Comment on the results !

(b) How would you rationalize the introduction of the variable X1 ?

(c) How would you explain the value of the eoeficient of D1, D2, D3, D4 ?