Problem 3 The hotel chain from problem 2 also recorded the median per capita inc

Question

Problem 3 The hotel chain from problem 2 also recorded the median per capita income (in $1,000s) for the town each site is in. Let x- median income, y margin, A simple linear regression analysis was performed giving the output below Give and interpret the slope, b Give and interpret the y-intercept, bo. Comment on whether or not it has practical meaning SUMMARY OUTPUT Regression Statistics MultipleR R Square Adjusted R Square Standard Error Observations 0.247500311 0.061256404 0.051677388 7.549169102 100 ANOVA sS MS gnificance F Regression Residual Total 1 364.4423959 364.4424 6.394853 0.013041 98 5585.015504 56.98995 5949.4579 Intercept Income coefficients standard Error t Stat P-value Lower 95%Up er 95%ower 95.0 er 95.09 28.608066736.816253796 4.197037 5.95E-05 15.08143 42.1347 15.08143 42.1347 0.472968892 0.187032588 2.528805 0.013041 0.101809 0.844129 0.101809 0.844129

Explanation / Answer

For slope ,

For 1 $ increase in the value of median income , the margin increases by 0.4729 units .

For intercept ,

The expected value of margin when median income is zero is 28.6081 units .

Intercept doesnot have any practical meaning , since median income cannot be 0 . Thus , intercept has no practical meaning .

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