Ambiance of 5-star hotels. Although invisible and intangible, ambient conditions such as air quality (x1), temperature (x2), odor/aroma (x3), music (x4), noise level (x5), and overall image (x6) may affect guests’ satisfaction with their stay at a hotel. A study in the Journal of Hospitality Marketing & Management (Vol. 24, 2015) was designed to assess the effect of each of these ambient factors on customer satisfaction with the hotel (y). Using a survey, researchers collected data for a sample of 422 guests at 5-star hotels. All variables were measured as an average of several 5-point questionnaire responses. The results of the multiple regression are summarized in the table below. Variable b Estimate Std. Error t-Value Air Quality (x1) .122 .0486 2.51 Temperature (x2) .018 .0545 .33 Odor/Aroma (x3) .124 .0446 2.78 Music (x4) .119 .0372 3.20 Noise/Sound Level (x5) .101 .0380 2.66 Overall Image (x6) .463 .0438 10.56 R2 = .508, R2 adj = .501, F = 71.42 Source: Based on M. Suh, et al. “Invisible and Intangible, but Undeniable: Role of Ambient Conditions in Building Hotel Guests’ Loyalty,” Journal of Hospitality Marketing & Management, Vol. 24, No. 7, 2015 (Table 4). Copyright: 2015.

a. Write the equation of a first-order model for hotel image (y) as a function of the six ambient conditions.

b. Give a practical interpretation of each of the b-estimates shown.

c. A 99% confidence interval for b6 is (.350, .576). Give a practical interpretation of this result.

d. Interpret the value of adjusted R2 .

e. Is there sufficient evidence that the overall model is statistically useful for predicting hotel image (y)? Test using a = .01.