The Following table shows the regression coefficient (B) and the t-statistics (T

Question

The Following table shows the regression coefficient (B) and the t-statistics (T) for the variables influencing business traveler demand for hotel rooms (including hotel prices and attributes) from the study that was discussed in this chapter and in Chapter 3
Business Traveler Demand for Hotel Rooms

Attributes B (t)

Price (S/night) -0.0.346 (8.83)

Room quantity 1,258 (5,92)

1= average

2= finest

Quantity of public areas 0.227 (0.88)

1= average

2= finest

Check – in time (minutes) -0.036 (-1.50)

Guaranteed Reservation 1.227 (4.88)

1= no

2= yes

General Staff performance 0.169 (0.74)

1= average

2= yes

Frequent guest programs 0.37 (1.52)

1=no

2=yes

Availability of nonsmoking floors 0.359 (2.29)

1 = no

2= yes

Availability of free parking 0.969 (4.61)

1= no

2= yes



Which characteristics are most and least important in influencing business traveler demand for hotel rooms?

Explanation / Answer

We usually deduce the influence of the characteristic (variables) by looking the value of T=statistic of their coefficient at the given level of significance and degrees of freedom. If T(table)T(calculated) at the given level of significance then we say that null hypothesis is not rejected and that the variable do not have any influence over the dependent variable(here the business traveller demand). But since the number of observations are not given in this therefore we judge the influence of the coefficients by determining their standard error(S.E) where S.E.= regression coefficient(B)/T-statistic on calculating the S.E. of all the coefficients we find that it is minimum for Check in time in minutes and maximum for Room Quantity. Hence Check in time is most important in influencing business traveler demand and room quantity is the least important.

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