The manager of a large hotel on the Riviera in southern France wanted to forecast the monthly vacancy rate (as a percentage) during the peak season. After considering a long list of potential variables, she identified two variables that she believed were most closely related to the vacancy rate: The average daily temperature and the value of the currency in American dollars. She collected data for 25 months.

a. Perform a regression analysis using a first-order model with interaction.

b. Perform a regression analysis using a secondorder model with interaction.

c. Which model fits better? Explain.