Question

An airline wants to build a model for forecasting demand for flights. Among other independent variables,...

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?

Math   Statistics-And-Probability   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

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.

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
1.The error term in the regression model describes the effects of all factors other than the...
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...
__________ 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 +...
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...
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...
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...
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:...
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...
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...
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...
Suppose a local car dealer is considering how to predict his weekly Quantity of Cars sold...
Suppose a local car dealer is considering how to predict his weekly Quantity of Cars sold and he has hired you to conduct a regressionary analysis. He believes that the two key determinants of the demand is the number of salesmen on staff that week, and the hours the shop is open. Write out the Regression Equation and Interpret the intercept and the parameters on Hours and Salesmen. Determine if hours opened and salesmen are statistically significant variables in determining...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT