Question

A researcher analyzes the factors that may influence amusement park attendance and estimates the following model. Attendance-Ao + A Price + β2 Rides + ε, where Attendance is the daily attendance (in 1,000s), Price is the gate price (in $), and Rides is the number of rides at the amusement park. The researcher would like to construct interval estimates for Attendance when Price and Rides equal $85 and 30, respectively. The researcher estimates a modified model where Attendance is the response variable and the explanatory variables are now defined as Price*= Price-85 and Rides*-Rides-30. A portion of the regression results is shown in the accompanying table Regression Statistics Multiple R R Square Adjusted R Square StandardError Observations 0.96 0.92 0.91 9.75 30 Intercept Price* Rides Coefficients 34.41 1.20 3.62 Standard Error 4.06 0.28 0.36 t-stat 8.48 4.23 10.15 p-value 4.33E-09 0.0002 1.04E-10 Lower 95% 26.08 1.79 2.89 Upper 95% 42.74 0.62 4.35 According to the modified model, which of the following is a 95% prediction interval for Attendance when Price and Rides equal $85 and 30, respectively? (Note that to.025,27 2.052.) Multiple Choice 0 (16,330, 53,450) 12,740, 56,080] 26,080, 42,740] 28,900, 41,500]

Answer 1

SOIn Inean o oRS (34y/-745? χ Y06134.ylt?ose χ yo() (26080, 42340) q5% Pheji,н ion inthWN-