Question
The database Airfares.xlsx contains information on the air- fare on 638 routes in the United States. In addition, it contains data on the length of
The database Airfares.xlsx contains information on the air- fare on 638 routes in the United States. In addition, it contains data on the length of the route, the average income in the starting and ending cities, whether Southwest Airlines flies on the route, and other variables. The goal is to create a Multiple Linear Regression model which predicts the airfare along a given route. The datafile named Airfares HW4 datafile is shared with you
a. Develop an estimated multiple regression equation which predicts the airfare along a given route.
b. Which variables are significant? Do you prefer to add all the independent variables to the model?
c. Interpret the R2 (R-squared).
d. Interpret the results and please add your comments on the fitting of your model?
| S_CODE | S_CITY | E_CODE | E_CITY | COUPON | NEW | VACATION | SW | HI | S_INCOME | E_INCOME | S_POP | E_POP | SLOT | GATE | DISTANCE | PAX | FARE |
| * | Dallas/Fort Worth TX | * | Amarillo TX | 1.00 | 3 | No | Yes | 5291.99 | $28,637 | $21,112 | 3036732 | 205711 | Free | Free | 312 | 7864 | $64.11 |
| * | Atlanta GA | * | Baltimore/Wash Intl MD | 1.06 | 3 | No | No | 5419.16 | $26,993 | $29,838 | 3532657 | 7145897 | Free | Free | 576 | 8820 | $174.47 |
| * | Boston MA | * | Baltimore/Wash Intl MD | 1.06 | 3 | No | No | 9185.28 | $30,124 | $29,838 | 5787293 | 7145897 | Free | Free | 364 | 6452 | $207.76 |
| ORD | Chicago IL | * | Baltimore/Wash Intl MD | 1.06 | 3 | No | Yes | 2657.35 | $29,260 | $29,838 | 7830332 | 7145897 | Controlled | Free | 612 | 25144 | $85.47 |
| MDW | Chicago IL | * | Baltimore/Wash Intl MD | 1.06 | 3 | No | Yes | 2657.35 | $29,260 | $29,838 | 7830332 | 7145897 | Free | Free | 612 | 25144 | $85.47 |
| * | Cleveland OH | * | Baltimore/Wash Intl MD | 1.01 | 3 | No | Yes | 3408.11 | $26,046 | $29,838 | 2230955 | 7145897 | Free | Free | 309 | 13386 | $56.76 |
| * | Dallas/Fort Worth TX | * | Baltimore/Wash Intl MD | 1.28 | 3 | No | No | 6754.48 | $28,637 | $29,838 | 3036732 | 7145897 | Free | Free | 1220 | 4625 | $228.00 |
| * | Fort Lauderdale FL | * | Baltimore/Wash Intl MD | 1.15 | 3 | Yes | Yes | 5584.00 | $26,752 | $29,838 | 1440377 | 7145897 | Free | Free | 921 | 5512 | $116.54 |
| * | Houston TX | * | Baltimore/Wash Intl MD | 1.33 | 3 | No | Yes | 4662.44 | $27,211 | $29,838 | 3770125 | 7145897 | Free | Free | 1249 | 7811 | $172.63 |
| * | Kansas City MO | * | Baltimore/Wash Intl MD | 1.60 | 2 | No | Yes | 2617.00 | $25,450 | $29,838 | 1694803 | 7145897 | Free | Free | 964 | 4657 | $114.76 |
| * | Las Vegas NV | * | Baltimore/Wash Intl MD | 1.57 | 3 | Yes | Yes | 1772.59 | $24,575 | $29,838 | 1197234 | 7145897 | Free | Free | 2104 | 4489 | $158.20 |
| * | Los Angeles CA | * | Baltimore/Wash Intl MD | 1.50 | 1 | No | Yes | 3932.29 | $24,706 | $29,838 | 9056076 | 7145897 | Free | Free | 2329 | 7349 | $228.99 |
| * | Nashville TN | * | Baltimore/Wash Intl MD | 1.12 | 3 | No | Yes | 4471.62 | $25,995 | $29,838 | 1115048 | 7145897 | Free | Free | 587 | 5654 | $79.17 |
| * | New Orleans LA | * | Baltimore/Wash Intl MD | 1.29 | 3 | No | Yes | 4356.12 | $22,038 | $29,838 | 1308499 | 7145897 | Free | Free | 992 | 3525 | $132.05 |
| JFK | New York/Newark NY | * | Baltimore/Wash Intl MD | 1.00 | 3 | No | No | 2626.90 | $32,991 | $29,838 | 8621121 | 7145897 | Controlled | Free | 181 | 7171 | $117.23 |
| LGA | New York/Newark NY | * | Baltimore/Wash Intl MD | 1.00 | 3 | No | No | 2626.90 | $32,991 | $29,838 | 8621121 | 7145897 | Controlled | Free | 181 | 7171 | $117.23 |
| EWR | New York/Newark NY | * | Baltimore/Wash Intl MD | 1.00 | 3 | No | No | 2626.90 | $32,991 | $29,838 | 8621121 | 7145897 | Free | Constrained | 181 | 7171 | $117.23 |
| * | Orlando FL | * | Baltimore/Wash Intl MD | 1.13 | 3 | Yes | Yes | 5706.76 | $22,360 | $29,838 | 1421287 | 7145897 | Free | Free | 788 | 11013 | $106.11 |
| * | Phoenix AZ | * | Baltimore/Wash Intl MD | 1.86 | 3 | No | Yes | 1230.48 | $23,025 | $29,838 | 2753373 | 7145897 | Free | Free | 2001 | 4408 | $181.16 |
| * | Salt Lake City UT | * | Baltimore/Wash Intl MD | 1.93 | 3 | No | Yes | 2000.67 | $21,121 | $29,838 | 1228816 | 7145897 | Free | Free | 1866 | 2767 | $157.50 |
| * | San Diego CA | * | Baltimore/Wash Intl MD | 1.87 | 3 | No | Yes | 1572.93 | $23,903 | $29,838 | 2673620 | 7145897 | Free | Free | 2290 | 3170 | $200.20 |
| * | San Francisco CA | * | Baltimore/Wash Intl MD | 1.52 | 3 | No | No | 2967.59 | $38,813 | $29,838 | 1653017 | 7145897 | Free | Free | 2454 | 6417 | $246.85 |
| * | St Louis MO | * | Baltimore/Wash Intl MD | 1.14 | 3 | No | Yes | 4191.24 | $25,824 | $29,838 | 2549844 | 7145897 | Free | Free | 729 | 10264 | $99.70 |
| * | Tampa FL | * | Baltimore/Wash Intl MD | 1.13 | 3 | Yes | Yes | 5201.34 | $23,654 | $29,838 | 2195215 | 7145897 | Free | Free | 846 | 7082 | $106.77 |
| ORD | Chicago IL | * | Birmingham AL | 1.16 | 3 | No | Yes | 3627.46 | $29,260 | $23,858 | 7830332 | 895414 | Controlled | Free | 576 | 4138 | $113.50 |
| MDW | Chicago IL | * | Birmingham AL | 1.16 | 3 | No | Yes | 3627.46 | $29,260 | $23,858 | 7830332 | 895414 | Free | Free | 576 | 4138 | $113.50 |
| * | Seattle/Tacoma WA | * | Boise ID | 1.07 | 3 | No | Yes | 5255.24 | $30,916 | $23,901 | 2230831 | 372606 | Free | Free | 403 | 5995 | $69.12 |
| * | Atlanta GA | * | Boston MA | 1.25 | 3 | No | No | 5736.34 | $26,993 | $30,124 | 3532657 | 5787293 | Free | Free | 939 | 14005 | $210.00 |
| JFK | New York/Newark NY | * | Buffalo NY | 1.01 | 3 | No | No | 4040.09 | $32,991 | $23,184 | 8621121 | 1173217 | Controlled | Free | 291 | 12432 | $134.30 |
| 1. S_CODE: starting airport’s code | |||||||||||
| 2. S_CITY: starting city | |||||||||||
| 3. E_CODE: ending airport’s code | |||||||||||
| 4. E_CITY: ending city | |||||||||||
| 5. COUPON: average number of coupons (a one-coupon flight is a non-stop flight, a two-coupon flight is a one stop flight, etc.) for that route | |||||||||||
| 6. NEW: number of new carriers entering that route between Q3-96 and Q2-97 | |||||||||||
| 7. VACATION: whether a vacation route (Yes) or not (No); Florida and Las Vegas routes are generally considered vacation routes | |||||||||||
| 8. SW: whether Southwest Airlines serves that route (Yes) or not (No) | |||||||||||
| 9. HI: Herfindel Index – measure of market concentration (refer to BMGT 681) | |||||||||||
| 10. S_INCOME: starting city’s average personal income | |||||||||||
| 11. E_INCOME: ending city’s average personal income | |||||||||||
| 12. S_POP: starting city’s population | |||||||||||
| 13. E_POP: ending city’s population | |||||||||||
| 14. SLOT: whether either endpoint airport is slot controlled or not; this is a measure of airport congestion | |||||||||||
| 15. GATE: whether either endpoint airport has gate constraints or not; this is another measure of airport congestion | |||||||||||
| 16. DISTANCE: distance between two endpoint airports in miles | |||||||||||
| 17. PAX: number of passengers on that route during period of data collection | |||||||||||
| 18. FARE: average fare on that route | |||||||||||
Step by Step Solution
3.39 Rating (155 Votes )
There are 3 Steps involved in it
Step: 1
ANSWER A Multiple regression formula is used in the analysis of the relationship between dependent and multiple independent variables and the formula is represented by the equation Y is equal to a plu...
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Thermodynamics An Engineering Approach
Authors: Yunus A. Cengel, Michael A. Boles
8th edition
73398179, 978-0073398174
