Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

2. You run a ski resort, and a big part of your business is selling ski lessons. You hire ski instructors of various experience levels.

image text in transcribedimage text in transcribed
2. You run a ski resort, and a big part of your business is selling ski lessons. You hire ski instructors of various experience levels. and you also offer a training program; instructors can take classes from time to time. Over the years, you have collected data on the performance of your ski instructors. In particular, every time a person has a lesson, you record the years of experience of the instructor, the number of classes the instructor has taken. and rerunu. a dummy variable equal to one if person 1' returns to the resort in future years. You value repeat business. so you would like it if instructors get more people to return. You estimate the following regression: rerumr=o+lexpeencer+f32coursem+ Bexpericnccixcoursesr-I-e where experiencemnd caursesr are the years of experience and the number of courses of the instructor that person i used. a. Interpret p0. b. Suppose experience and courses both increase the return rate, but courses are more important for less experienced instructors. What signs would you expect for 13, and [33? c. Suppose 1=0.02.2=0.03. and a=0.001. What is the impact of an additional course on the return probability if expert-10? At what value of experience does an additional course have exactly zero impact

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Algebra And Trigonometry

Authors: Cynthia Y Young

3rd Edition

1118475755, 9781118475751

More Books

Students also viewed these Mathematics questions