Although invisible and intangible, ambient conditions such as air quality (x1), temperature (x2), odor/aroma (x3), music (x4),

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Although invisible and intangible, ambient conditions such as air quality (x1), temperature (x2), odor/aroma (x3), music (x4), noise level (x5), and overall image (x6) may affect guests' satisfaction with their stay at a hotel. A study in the Journal of Hospitality Marketing & Management (Vol. 24, 2015) was designed to assess the effect of each of these ambient factors on customer satisfaction with the hotel (y). Using a survey, researchers collected data for a sample of 422 guests at 5-star hotels. All variables were measured as an average of several 5-point questionnaire responses. The results of the multiple regression are summarized in the table on the next page.

a. Write the equation of a first-order model for hotel image (y) as a function of the six ambient conditions.

B Estimate Std. Error t-Value Variable Air Quality (x) Temperature (x2) Odor/Aroma (x3) Music (x4) Noise/Sound Level (xs

b. Give a practical interpretation of each of the b-estimates shown.
c. A 99% confidence interval for β6 is (.350, .576). Give a practical interpretation of this result.
d. Interpret the value of adjusted R2.
e. Is there sufficient evidence that the overall model is statistically useful for predicting hotel image (y)? Test using α = .01.

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Statistics For Business And Economics

ISBN: 9780134506593

13th Edition

Authors: James T. McClave, P. George Benson, Terry Sincich

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