Aa Aa 7. Examples Miscellaneous, Problem 15 You are given the quarterly data for hotel occupancy in this Excel file (Note: Reload the file each time through this problem). Regress occupancy rate (Rate) on a trend term (1, 2, . ..) and dummy variables for seasons (1 if first quarter, 1 if second quarter, etc.). Note: You need to drop one of the four seasons to run your regression; otherwise your model will suffer from perfect multicollinearity (or no intercept can be estimated). Omit the dummy variable for 4th Quarter. Using a model that includes indicator variables for the quarters, what is the test statistic for testing whether or not the second quarter has a significant effect on hotel occupancy? What is the predicted value for the second quarter of 1996 using this model? Now instead of dropping the fourth quarter, drop the third quarter (so your model will have indicators for the first, second, and fourth quarter now). Once you have run this regression, what is the new test statistic for testing whether or not the second quarter has a significant effect on hotel occupancy? What is the new predicted value for the second quarter of 1996 using this model? e2-136935902862283055 t-9006875208303207763 8 5 6 7 8 5 5 7 7 6 5786678668 12341234123412341234 11112222333344445555 01 2345678901 Aa Aa 7. Examples Miscellaneous, Problem 15 You are given the quarterly data for hotel occupancy in this Excel file (Note: Reload the file each time through this problem). Regress occupancy rate (Rate) on a trend term (1, 2, . ..) and dummy variables for seasons (1 if first quarter, 1 if second quarter, etc.). Note: You need to drop one of the four seasons to run your regression; otherwise your model will suffer from perfect multicollinearity (or no intercept can be estimated). Omit the dummy variable for 4th Quarter. Using a model that includes indicator variables for the quarters, what is the test statistic for testing whether or not the second quarter has a significant effect on hotel occupancy? What is the predicted value for the second quarter of 1996 using this model? Now instead of dropping the fourth quarter, drop the third quarter (so your model will have indicators for the first, second, and fourth quarter now). Once you have run this regression, what is the new test statistic for testing whether or not the second quarter has a significant effect on hotel occupancy? What is the new predicted value for the second quarter of 1996 using this model? e2-136935902862283055 t-9006875208303207763 8 5 6 7 8 5 5 7 7 6 5786678668 12341234123412341234 11112222333344445555 01 2345678901