Question

# A researcher analyzes the relationship between amusement park attendance and the price of admission. She estimates...

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)

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

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