Question

In exercise 12, the following data on x = average daily hotel room rate and y = amount spent on entertainment (The Wall Street Journal, August 18, 2011) lead to the estimated regression equation ŷ = 17.49 + 1.0334x. For these data SSE = 1541.4.

Click on the datafile logo to reference the data. Use Table 1 of Appendix B.

City	Room Rate ($)	Entertainment ($)
Boston	148	161
Denver	96	105
Nashville	91	101
New Orleans	110	142
Phoenix	90	100
San Diego	102	120
San Francisco	136	167
San Jose	90	140
Tampa	82	98

a. Predict the amount spent on entertainment for a particular city that has a daily room rate of $89 (to 2 decimals).

Answer 1

ŷ = 17.49 + 1.0334*89= 109.46