Answered step by step
Verified Expert Solution
Question
1 Approved Answer
The following regression output belongs to the analysis of hotel prices (in thousands) in three German cities. The x variables are square feet, annual profit
The following regression output belongs to the analysis of hotel prices (in thousands) in three German cities. The x variables are square feet, annual profit (in thousands), city dummy variables and interactions between profit and city dummy variables. There are three cities in the sample: Berlin, Cologne and Munich. The dummy variable Berlin is 1 if the hotel is in Berlin and 0 otherwise. The dummy variable Cologne is 1 if the hotel is in Cologne and 0 otherwise. There are also two interaction variables: Profit* Berlin and Profit Cologne. Every additional thousand dollars of annual profit (increases/decreases) the predicted price of a hotel by thousand dollars if the hotel is in Munich. increases; 7.968 increases; 10.743 increases; 9376.417 decreases; 6.054 decreases; 1.914
Step by Step Solution
There are 3 Steps involved in it
Step: 1
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