Question
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
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) a dummy variable for rewards program membership and run simple linear regression model with this variable.Interpret regression coefficient.
(B) Interpretthe R2of regression.
(C) suitable dummy variables for the remaining non-numeric variable in the data set.multiple regression model which includes all explanatory variables from the data file. Inter all regression coefficients that are significant at the 5% level.
(D)Which model would you choose? Explain.
(E) You suspect that the effect of the rewards membership on guest purchases depends on whether or not the guest travels from out of state. a suitable interaction variable and add it to your model from part (C). Interpret the coefficient of the interaction variable.
https://docs.google.com/spreadsheets/d/1VhPsG0UQ_w7XG2ZpqTXwyEmFStmhsoDFq_7hyZaXW3U/edit#gid=1980436350
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started