The manager of the Commander Hotel near City Stadium believes that how well the
ID: 447155 • Letter: T
Question
The manager of the Commander Hotel near City Stadium believes that how well the local Blue Sox professional baseball team is playing has an impact on the occupancy rate at the hotel during the summer months. Following are the number of victories for the Blue Sox (in a 162-game schedule) for the past eight years and the hotel occupancy rates:
Develop a linear regression model for these data, and forecast the occupancy rate for next year if the Blue Sox win 85 games. Does there appear to be a strong relationship between wins and occupancy rate?
Russell, Roberta S.; Taylor, Bernard W. (2013-12-09). Operations and Supply Chain Management, 8th Edition (Page 548 Question 12-30). Wiley. Kindle Edition.
Year Number of Blue Sox Wins Occupancy Rate (%) 1 70 81% 2 65 74 3 81 83 4 88 84 5 80 85 6 92 91 7 83 88 8 64 80Explanation / Answer
We conducted the Regression analysis using the Data analysis tool in Excel
Occupancy rate @ 85 Wins for Blue Sox is = 0.8629 = 86.29%
And yes there is strong fit betwen wins and occupancy rate
The Output is
R Square equals 0.7442, which is a good fit. Only 74% of the variation in Occupany is explained by the independent variables Number of Blue Sox wins . But there must be one more vari0.005 very able which helps us take this to 100%
The Significance levle is 0.005 very les than imit of 0.05 . hecne the data is relaible
The Function is defined as = Occupany Rate = 0.499 + 0.0042* Number of Blue Sox Wins
At 85 Wins
Occupancy rate = 0.8629 = 86.29%
Regression Statistics Multiple R 0.862627 R Square 0.744126 Observations 8 ANOVA df SS MS F Significance F Regression 1 0.0139524 0.013952 17.44903 0.005831603 Residual 6 0.0047976 0.0008 Total 7 0.01875Related Questions
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