ncur Technologies, Inc., is a large expense-management company located inRedmond, Washington. The Wall street Journal asked Concur to examine the datafrom 8.3 million expense reports to provide insights regarding business travelexpenses. Their analysis of the data showed that New York was the most expensivecity, with an average daily hotel room rate of $198 and an average amount spent onentertainment, 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 theroom rate and $99 for entertainment. The following table shows the average dailyhotel room rate and the amount spent on entertainment for a random sample of 9 ofthe 25 most visited U.S. cities (The Wall street Journal, August 18, 2011).CityRoom Rate($)Entertainment($)Boston 148 161Denver 96 105Nashville 91 101New Orleans 110 142Phoenix 90 100San Diego 102 120San Francisco 136 167San Jose 90 140Tampa 82 98a. Develop a scatter diagram for these data with the room rate as theindependent variable.b. What does the scatter diagram developed in part (a) indicate about therelationship between the two variables?c. Develop the least squares estimated regression equation d. Provide an interpretation for the slope of the estimated regression equation.e. The average room rate in Chicago is $128, considerably higher than the U.S.average. Predict the entertainment expense per da
ncur 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
of $172. In comparison, the U.S. averages for these two categories were $89 for the
room rate and $99 for entertainment. The following table shows the average daily
hotel room rate and the amount spent on entertainment for a random sample of 9 of
the 25 most visited U.S. cities (The Wall street Journal, August 18, 2011).
City
Room Rate
($)
Entertainment
($)
Boston 148 161
Denver 96 105
Nashville 91 101
New Orleans 110 142
Phoenix 90 100
San Diego 102 120
San Francisco 136 167
San Jose 90 140
Tampa 82 98
a. Develop a
independent variable.
b. What does the scatter diagram developed in part (a) indicate about the
relationship between the two variables?
c. Develop the least squares estimated regression equation
d. Provide an interpretation for the slope of the estimated regression equation.
e. The average room rate in Chicago is $128, considerably higher than the U.S.
average. Predict the entertainment expense per da
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