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Extra Credit Opportunity The Cheyenne Hotel in Big Sky, Montana, has accumulated records of the total electrical costs of the hotel and the number of
Extra Credit Opportunity The Cheyenne Hotel in Big Sky, Montana, has accumulated records of the total electrical costs of the hotel and the number of occupancy-days over the last year. An occupancy-day represents a room rented for one day. The hotel's business is highly seasonal, with peaks occurring during the ski season and in the summer. Month January February Occupancy-Days 1,736 1,904 2,356 960 360 March April May June 744 Electrical Costs $ 4,127 $ 4,207 $ 5,083 $ 2,857 $ 1,871 $ 2,696 $ 4,670 $ 5,148 $ 2,691 $ 1,588 $ 2,454 $ 3,529 July August September October 2,108 2,406 840 124 November 720 1,364 December Use the above data to calculate the equation of a cost line (Y = a + bx) using least-squares regression. You have 2 options for doing this: Option 1: Calculate the equation of a cost line by hand. See the appendix to Ch. 5 for a tutorial on how to do this. Potential bonus points...10
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