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Causal (Associative) Forecasting; Regression Analysis Hotel A wants to see the impact of three independent variables, loyalty program tier (X1), price (X2), and location (X3),

Causal (Associative) Forecasting; Regression Analysis

Hotel A wants to see the impact of three independent variables, loyalty program tier (X1), price (X2), and location (X3), on its revpar (Y). The multiple regression line caluculated is as following:

Y = 2.5 + 2.1(X1) + 0.8(X2) 4.5(X3)

Forecast Hotel As revpar for the following conditions a and b:

X1 (loyalty program tier)

X2 (price)

X3 (location)

a

2

299

3.5

b

4

199

6.5

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