Question

Text exercise 39 page 638. This question uses the same data as exercise 2 above, and the data is in the accompanying spreadsheet.

(a) Estimate the regression in Excel and report the regression line.                                  [2 pts]

(b) Calculate a  95% confidence interval for the forecast of the average amount spent on entertainment at a city where the room rate is $89.                                                       [3 pts]

(b) Calculate a  90% confidence interval for the forecast of the idiosyncratic amount spent on entertainment at a city where the room rate is the average rate of $128.                        [3 pts]

(d) Use a t-test to test the hypothesis that there is a 1 to 1 relationship between entertainment expenses and hotel expenses. (ie test H0: β=1)                                                    

DATA:

Data for Problem 39 p638
city	room rate	Entertainment
Boston	148	161
Denver	96	105
Nashville	91	101
New Orleans	110	142
Phoenix	90	100
San Fdiego	102	120
San Francisco	136	167
San Jose	90	140
Tampa	82	98

Answer 1