A vacation resort has collected data on 150 resort guests to study their spending behavior. In particular, they are interested in whether their rewards program increases guest spending. Their data set includes the amount each guest spent during their 3-day stay, whether the guest traveled from out of state, number of children, number ofprevious stays, age, and whether the guest brought any pets or is a member of the resort's rewards program.

(A) Create a dummy variable for rewards program membership and run a simple linear regression model with this variable.Interpret your regression coefficient.

(B) Interprettheof your regression.

(C)Create suitable dummy variables for the remaining non-numeric variable in the data set.Run a multiple regression model which includes all explanatory variables from the data file. Interpret all regression coefficients that are significant at the 5% level.

(D)Which model would you choose? Explain your choice.

(E) You also suspect that the effect of the rewards membership on guest purchases depends on whether or not the guest travels from out of state. Create a suitable interaction variable and add it to your model from part (C). Interpret the coefficient of the interaction variable.