QUESTION 4 (5 marks total) For many countries, tourism is an important part of revenues In trying to predict tourism revenues, one of the independent variables that may be considered important is the number of foreign visitors to the country Data for six different countries and the resulting (partial) estimated regression printout using Excel are listed below Country Number of visitors (million) Tourism Receipts ($billion) France 60 27 3 Spain 48 25 1 US 45 58 4 Italy 30 27 1 Britain 23 17 5 Germany 15 11 9 Source The Economist, July 1996 df SS Regression 1 342 1208319 Residual 4 961 1275014 Total 5 1303 248333 Coefficients Standard Error t Stat P value Intercept 9 947452928 16 30900785 0 609936118 0 574853993 Number of visitors (million) 0 486946979 0 408086683 1 193243983 0 298709277 Use the regression model above for the following Forecast tourism revenues for 30 million visitors (1 5 marks) Question 4 continued Find the error (residual) for 30 million visitors (1 5 marks) Determine the coefficient of determination (R 2 ) for this regression problem (1 mark) The p value for the regression coefficient of number of visitors is 0 0 298709277 from the regression printout At the 5 level of significance (0 05), would you reject or not reject the Null hypothesis that there is no significant linear relationship between number of visitors and tourism receipts Justify your answer in no more than 1 2 sentences (60 words maximum) (1 mark)

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QUESTION 4 (5 marks total) For many countries, tourism is an important part of revenues. In trying to predict tourism revenues, one of the independent

QUESTION 4 (5 marks total)

For many countries, tourism is an important part of revenues. In trying to predict tourism revenues, one of the independent variables that may be considered important is the number of foreign visitors to the country. Data for six different countries and the resulting (partial) estimated regression printout using Excel are listed below:

Country	Number of visitors (million)	Tourism Receipts ($billion)
France	60	27.3
Spain	48	25.1
US	45	58.4
Italy	30	27.1
Britain	23	17.5
Germany	15	11.9

Source: The Economist, July 1996

	df	SS
Regression	1	342.1208319
Residual	4	961.1275014
Total	5	1303.248333

	Coefficients	Standard Error	t Stat	P-value
Intercept	9.947452928	16.30900785	0.609936118	0.574853993
Number of visitors (million)	0.486946979	0.408086683	1.193243983	0.298709277

Use the regression model above for the following:

Forecast tourism revenues for 30 million visitors. (1.5 marks)

Question 4 continued..

Find the error (residual) for 30 million visitors. (1.5 marks)

Determine the coefficient of determination (R²) for this regression problem. (1 mark)

The p value for the regression coefficient of number of visitors is 0.0.298709277 from the regression printout. At the 5% level of significance (0.05), would you reject or not reject the Null hypothesis that there is no significant linear relationship between number of visitors and tourism receipts? Justify your answer in no more than 1-2 sentences (60 words maximum). (1 mark)