Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

. Apartment occupancy rates in a coastal town are thought to be influenced by the number of tourists staying in the area. Over the past

. Apartment occupancy rates in a coastal town are thought to be influenced by the number of tourists staying in the area. Over the past 10 years, the following data has been collected:

Year 1 2 3 4 5 6 7 8 9 10
Number of Tourists (1,000s) 15 11 18 12 20 15 16 11 19 13
Occupancy Rate (%) 80 77 82 71 90 78 82 72 88 75

a. Calculate the linear correlation coefficient and interpret its value in the context of this problem.

b. Calculate the equation of the regression line for predicting the apartment occupancy rate based on the number of tourists.

c. If the town expects 22,000 tourists this year, use the regression equation to predict the apartment occupancy rate.

d. If there are no tourists at all, explain the predicted ridership.

A. to calculate the linear coefficient

r=E(X-X')(y-y') /sqrt E(x-x') sqrt2 * E (y-y') Sqrt

X and y = variables number of tourist and occupancy rate

X' and y are means

E denotes the sum across all data points

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

Auditing A Practical Approach

Authors: Robyn Moroney

1st Canadian Edition

978-1118472972, 1118472977, 978-1742165943

More Books

Students also viewed these Accounting questions