Answer:
Let's explore this step-by-step:
Greetings!
Here are the variables
X: daily cost of hotel rooms
Y: expenses for entertainment
Refer to the second attachment for the scatter plot.
The population regression equation can be expressed as E(Yi)= α + βXi
To find the y-intercept and the slope of the regression line, apply the following formulas:
a= Y[bar]-bX[bar]
In this scenario, n= 9; ∑X= 945; ∑X²= 103325; ∑Y= 1134; ∑Y²= 148804; ∑XY= 123307
Calculating X[bar]= ∑X/n= 945/9= 105
Calculating Y[bar]= ∑Y/n= 1134/9= 126
Thus, it follows that a= 126 - 1.03*105= 17.49
The regression equation is then given by ^Y= 17.49 + 1.03Xi
Slope interpretation: For each unit increase in the daily hotel rate, the expected average spending on entertainment rises by $1.03.
Given that the room rate in Chicago is $128 (X), we can predict the entertainment expenditure (Y) using the estimated regression line:
^Y= 17.49 + 1.03Xi= 17.49 + 1.03*128= 149.33
The anticipated spending on entertainment for Chicago is $149.33
I trust this will assist you!
