Question: Decision Science Associates has been asked to do a feasibility study for a proposed destination resort to be located within half a mile of the
Decision Science Associates has been asked to do a feasibility study for a proposed destination resort to be located within half a mile of the Grand Coulee Dam. Mark Craze is not happy with the regression model that used the price of a regular gallon of gasoline to predict the number of visitors to the Grand Coulee Dam Visitors Center. After plotting the data on a scatter diagram. Mark decides to use a dummy variable to represent significant celebrations in the general area. Mark uses a 1 to represent a celebration and a 0 to represent no celebration. Note that the 1 in 1974 represents the Expo '74 World's Fair celebrated in Spokane.. Washington, the 1 in 1983 represents the celebration of the fiftieth anniversary of the construction of Grand Coulee Dam, and the I in 1986 represents the World's Fair held in Vancouver, Canada. Mark also decides to use time as a predictor variable. The data are shown in Table P-10. Write a report for Mark to present to his boss. Indicate whether serial correlation is a problem. Also indicate what additional information would be important in deciding whether to recommend that the destination resort be built.
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
