Question

An airline wants to build a model for forecasting demand for flights. Among other independent variables, it believes that Month is important in determining demand. Given that this is a categorical variable, how many corresponding indicator variables do they have to include in their regression model?

Answer #1

There are many indicators possible based on the specific requirement for the forecasting model for flights.

Some of the common indicator variables which can be used in the regression model for the firecasting demands for flight are fuel price, past trends, on-board flight sales and load factor, etc.

these are most frequently used indicator varianbles which are used in the regression model for forecasting demand for flights. So, they need to include at least 5 indicator variables in their regression model.

1.The error term in the regression model describes the effects
of all factors other than the independent variables on y (response
variable). T or F
2. In a regression model, at any given combination of values of
the independent variables, the population of potential error terms
is assumed to have an F distribution. T or F
3. In a regression model, a value of the error term depends upon
other values of the error term. T or F

__________ refers to the degree of correlation among independent
variables in a regression model.
a. Multicollinearity
b. Confidence level
c. Rank
d. Tolerance
__________ is used to test the hypothesis that the values of the
regression parameters ß1,
ß2,
...ßq are all zero.
a. Extrapolation
b. A t test
c. An F test
d. The least squares method
What would be the coefficient of determination if the total sum
of squares (SST) is 23.29 and the sum of squares due...

6. An ice cream cone demand regression model is given as:
Y = β0 + β1T +
β2S + u, where:
Y = number of cones (in thousands) sold per week
T = average temperature during the week
S = the price of a cup of frozen yogurt (a substitute for ice
cream) in dollars
a. List the independent variables. c. How many
explanatory variables are there in the model?
b. List the regressors.
d.
List the dependent variables....

Based on a sample of 30 observations the population regression
model to predict salary of employees (dependent variable, numerical
continuous) based on independent variables:
education, measured as number of years of education
(numerical, discrete but so many values),
work experience, measured as number of years of work
experience (numerical, continuous, for example 3.5 means 3 years 6
month work experience)
department, department of the employee, There are three main
departments in the organization (categorical nominal) Assume it
affects only intercept...

Applying Simple Linear Regression to Your favorite Data (Please
confirm with the instructor the dataset you find before you work on
this question) Many dependent variables in business serve as the
subjects of regression modeling efforts. We list such variables
here: Rate of return of a stock Annual unemployment rate Grade
point average of an accounting student Gross domestic product of a
country Choose one of these dependent variables, or choose some
other dependent variable, for which you want to...

Avg Outside Temp
Attic Insulation (inches)
Age of Furnace (years)
Square Footage
Avg Heating Cost
29
5
4
1900
198
8
6
7
2800
355
6
10
9
2500
291
22
8
11
2000
230
55
2
4
1300
121
36
2
5
2100
250
28
4
9
2400
360
36
7
2
2300
164
59
5
9
1300
42
64
5
6
1500
90
19
4
8
2300
271
57
5
3
1400
96
39
7
11
1900
187...

Indentify the explanatory variable.
Identify the response variable
Choose the appropriate model from among these three:
Chi-square test of independence
One factor ANOVA
iii. Simple Linear Regression
A school psychologist believes students who have more homework
will sleep less. 200 students participated in a study. For each of
14 consecutive days, students were asked to count how many minutes
they spent doing their homework and how many minutes they slept
that night.
Does smoking change the way someone tastes salt?...

The maintenance manager at a trucking company wants to build a
regression model to forecast the time (in years) until the first
engine overhaul based on four explanatory variables: (1) annual
miles driven (in 1,000s of miles), (2) average load weight (in
tons), (3) average driving speed (in mph), and (4) oil change
interval (in 1,000s of miles). Based on driver logs and onboard
computers, data have been obtained for a sample of 25 trucks. A
portion of the data...

Charter Airline Operating Decisions
Firm-specific demand in the scheduled airline industry is
segmented by customer class and is highly uncertain so that an
order may not realize revenue and a unit sale. Airlines respond to
this dynamic, highly competitive environment by tracking
reservations at preannounced fares and reassigning capacity to the
various market segments (“buckets”) as business travelers,
vacationers, and convention groups book the flights above or below
expected levels several days and even weeks before scheduled
departure. This systems...

On a typical night in a large city, about 25,000 people attend
a theatrical event, paying an average cost of over $110 per
ticket. The results of a multiple regression of weekly data for the
receipts in millions of dollars, the paid attendance in
thousands, the number of shows, and the average ticket price are
found below.
Write the regression model.
Receipts = −17.0253 + 0.1116 Attendance + 0.0071 # Shows +
0.2016 Price
1.What does the coefficient of Attendance...

ADVERTISEMENT

Get Answers For Free

Most questions answered within 1 hours.

ADVERTISEMENT

asked 1 minute ago

asked 15 minutes ago

asked 16 minutes ago

asked 26 minutes ago

asked 27 minutes ago

asked 1 hour ago

asked 2 hours ago

asked 2 hours ago

asked 2 hours ago

asked 2 hours ago

asked 3 hours ago

asked 3 hours ago