Question

A researcher analyzes the relationship between amusement park attendance and the price of admission. She estimates the following model: Attendance = β0 + β1 Price + ε, where Attendance is the daily attendance (in 1,000s) and Price is the gate price (in $). A portion of the regression results is shown in the accompanying table.

	df	SS	MS	F
Regression	1	19,744.99	19,744.99	44.79
Residual	28	12,343.78	440.85
Total	29	32,088.78
	Coefficients	Standard Error	t-stat	p-value
Intercept	416.3	38.84	8.61	2.32E-09
Price	-4.35	0.46	-6.69	2.9E-07

Predict the Attendance for an amusement park that charges $80 for admission.

(no excel work)

Answer 1

Solution:
ANOVA table and Coefficient correlation table is given in the question
From Coefficient correlation table we can write Regression equation as follows
Attendance = 416.3 - 4.35*Price
Here Intercept of regression line = 416.3
Slope of regression line = -4.35
As the price increase by 1 unit than Attendance will decrease by 4.35 unit.
If X = 80 than
Attendance = 416.3 - 4.35*Price = 416.3 - 4.35*80 = 416.3 - 348 = 68.3
the Attendance for an amusement park that charges $80 for admission is (68.3*1000) = 68300