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.

City	Hotel Room Rate ($)	Entertainment ($)
Boston	152	159
Denver	99	107
Nashville	88	101
New Orleans	106	142
Phoenix	90	98
San Diego	103	121
San Francisco	138	166
San Jose	88	139
Tampa	81	99

1. What does the scatter diagram developed in part (a) indicate about the relationship between the two variables?

   The scatter diagram indicates a _________ linear relationship between the hotel room rate and the amount spent on entertainment.

2. Develop the least squares estimated regression equation.

   Entertainment=______+_________ room rate (to 4 decimals)

3. 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 _________ in the hotel room rate the amount spent on entertainment increases by $.

4. The average room rate in Chicago is $128, considerably higher than the U.S. average. Predict the entertainment expense per day for Chicago (to whole number).

   $

Answer 1