Hi,

EasyJet collected information in relation to its Dublin-Porto route over a 4-year period in order to predict ticket sales and make operational decisions regarding this route.  Data was collected in relation to the following variables:  Average number of tickets sold - The Dependent Variable 

The average price of the tickets

EasyJet's main competitor's average ticket price on the same route

The average income of people in Ireland

Required:

a)Explain what Multiple Regression is and how it can be used to generate a Demand Function.

b)Download the data file from Moodle, using EXCEL, undertake multiple regression on the data, and display the results in your EXCEL results file.

c)Write out the appropriate Demand (Ticket Sales) equation and comment on the value of the coefficients of the individual terms in the regression equation.You should also describe what each term means with respect to the overall demand for tickets.

d)Define and interpret the coefficient of determination (R²) and adjusted R² in your model.

e)Determine whether or not the independent variables, as a group, explain a statistically significant portion of the variation in ticket sales. Use your regression results and the tables provided to support your answer.

f)Using the statistical results you obtained from your regression analysis, and the tables provided, comment on the statistical significance of each of the independent variable included in the demand equation.

g)Does it appear that multicollinearity might be a problem in this case? Please justify your answer.