Palisades Eco-Park is a small ecological reserve that admits a relatively small number of visitors on any day, but provides both educational and entertaining lectures, exhibitions, and opportunities to observe nature. The company has collected the following data on labor costs and number of visitors to the park over the last 30 months.

Month Labor Cost Visitors 1 $ 26,520 2,400 2 $ 37,274 3,659 3 $ 41,052 3,968 4 $ 32,506 3,137 5 $ 35,753 3,350 6 $ 33,558 3,080 7 $ 32,891 3,113 8 $ 39,374 3,778 9 $ 39,614 3,897 10 $ 48,205 5,042 11 $ 43,300 4,201 12 $ 40,088 3,959 13 $ 35,378 3,410 14 $ 34,073 3,298 15 $ 37,974 3,541 16 $ 27,218 2,963 17 $ 31,495 4,795 18 $ 30,773 3,933 19 $ 28,338 3,405 20 $ 30,816 4,196 21 $ 26,389 2,823 22 $ 25,324 2,533 23 $ 29,675 4,612 24 $ 30,970 5,389 25 $ 28,882 3,659 26 $ 32,549 4,622 27 $ 29,428 4,220 28 $ 30,738 4,306 29 $ 29,209 3,545 30 $ 28,630 2,930

Required:

a. Estimate the labor costs assuming 3,200 visitors for the month using the results of a simple regression based on the 30 months of available data.

b. What percentage of the variance in the data does the R-squared value explain?

c. You learn that starting in month 16, the park started using a different, more automated system for interacting with visitors. Estimate the labor cost assuming 3,200 visitors using the results of a simple regression based on the data for months 16 through 30 only.

d. What percentage of the variance in the data does the R-squared value explain?

Question 2 of 6 Total 2 o