Create predictions for each of the potential sites using your regression results and the attributes for each
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Question:
Create predictions for each of the potential sites using your regression results and the attributes for each potential hotel site using the SUMPRODUCT formula.
You will need to decide whether to have an indoor pool or not and code that information as 1 or 0 based on your decision. You can easily compare the predicted operating margin of each potential site with and without a pool by changing the values back and forth from 1 to 0.
Rank the potential hotel sites from highest to lowest in terms of predicted operating margin.
Site | Indoor pool | Competitor rooms | Distance to competitor | Office space | Median income | Distance to downtown | Estimated Margin |
1 | 2802 | 1 | 476 | 51 | 8.8 | ||
2 | 3656 | 2.1 | 344 | 54 | 6.7 | ||
3 | 2875 | 0.1 | 392 | 61.5 | 13.6 | ||
4 | 2504 | 1.1 | 487 | 55.5 | 3.6 | ||
5 | 3152 | 2.4 | 508 | 57 | 8.1 |
Coefficients | Standard Error | t Stat | P-value | Lower 95% | Upper 95% | Lower 95.0% | Upper 95.0% | |
Intercept | 0.593008412 | 0.04087196 | 14.50893004 | 1.76492E-24 | 0.511715727 | 0.674301097 | 0.511715727 | 0.674301097 |
Competitor rooms | -6.8411E-05 | 6.70675E-06 | -10.20032311 | 2.63203E-16 | -8.17504E-05 | -5.50715E-05 | -8.17504E-05 | -5.50715E-05 |
Distance to competitor | -0.018781105 | 0.003639779 | -5.159956933 | 1.65639E-06 | -0.02602048 | -0.01154173 | -0.02602048 | -0.01154173 |
Office space | 0.000185051 | 1.94716E-05 | 9.503594323 | 6.42312E-15 | 0.000146322 | 0.000223779 | 0.000146322 | 0.000223779 |
Median income | -0.000175253 | 0.000444207 | -0.394529757 | 0.694201909 | -0.001058764 | 0.000708258 | -0.001058764 | 0.000708258 |
Distance to downtown | 0.001886448 | 0.001006759 | 1.87378249 | 0.064479451 | -0.000115956 | 0.003888852 | -0.000115956 | 0.003888852 |
Indoor pool D | 0.022840354 | 0.006788638 | 3.364497101 | 0.001162775 | 0.009338026 | 0.036342683 | 0.009338026 | 0.036342683 |
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