Question

Concur Technologies, Inc., is a large expense-management company located in Redmond, Washington. The Wall Street Journal asked Concur to examine the data from 8.3 million expense reports to provide insights regarding business travel expenses. Their analysis of the data showed that New York was the most expensive city, with an average daily hotel room rate of $198 and an average amount spent on entertainment, including group meals and tickets for shows, sports, and other events, of $172. In comparison, the U.S. averages for these two categories were $89 for the room rate and $99 for entertainment. The table in the Excel Online file below shows the average daily hotel room rate and the amount spent on entertainment for a random sample of 9 of the 25 most visited U.S. cities (The Wall Street Journal, August 18, 2011). Construct a spreadsheet to answer the following questions.

Boston	147	159
Denver	98	106
Nashville	87	102
New Orleans	114	142
Phoenix	87	99
San Diego	103	122
San Francisco	134	166
San Jose	90	140
Tampa	85	96

1. Develop the least squares estimated regression equation.

   Entertainment = ?????? + ?????? Room Rate (to 4 decimals)

2. Provide an interpretation for the slope of the estimated regression equation (to 3 decimals).

   The slope of the estimated regression line is approximately ???? . So, for every dollar increases in the hotel room rate the amount spent on entertainment increases by $???

Answer 1