Question 1

Use gretl and the "Business Travel Expenses" dataset to answer the following questions

The following table shows the average daily hotel room rate and the amount spent on entertainment for a random sample of 9 of the 25 most visited U.S. cities

City

Room Rate ($)

Entertainment ($)

Boston

148

161

Denver

96

105

Nashville

91

101

New Orleans

110

142

Phoenix

90

100

San Diego

102

120

San Francisco

136

167

San Jose

90

140

Tampa

82

98

a)Develop a scatter diagram for these data with the room rate as the independent variable

b)What does the scatter diagram developed indicate about the relationship between the two variables?

c)Develop the least squares prediction equation

d)Provide an interpretation for the slope of the estimated regression equation

e)The average room rate in Chicago is $128. Predict the entertainment expense per day for Chicago.

Question 1 Use gretl and the "Business Travel Expenses" dataset to answer the following questions The following table shows the average daily hotel room rate and the amount spent on entertainment for a random sample of 9 of the 25 most visited U.S. cities City Room Rate ($) Entertainment ($) Boston 148 161 Denver 96 105 Nashville 91 101 New Orleans 110 142 Phoenix 90 100 San Diego 102 120 San Francisco 136 167 San Jose 90 140 Tampa 82 98 a) Develop a scatter diagram for these data with the room rate as the independent variable b) What does the scatter diagram developed indicate about the relationship between the two variables? c) Develop the least squares prediction equation d) Provide an interpretation for the slope of the estimated regression equation e) The average room rate in Chicago is $128. Predict the entertainment expense per day for Chicago