Example 2.

The following is a statistical regression output for MacHall Caf, the only restaurant at the MacHall Hotel.

2016	X	Y	X = guests in hotel Y = covers served
January	4060	5200
February	4100	5360
March	4200	572
April	4250	5430
May	4200	5680
June	4150	5520
July	4300	5800
August	4350	5910
September	4400	6020
October	4200	5840
November	4080	5510
December	3600	5020

Summary Output
Multiple R	0.856821
R square	0.734142
Adjusted R square	0.707556
Standard error	161.8479
Observations	12

	Coefficients	Std. error	t Stat	p-value	Lower 95%	Upper 95%
Intercept	369.7173	993.400	0.372	0.718	1,843.715	2,583.149
X variable	1.254227	0.239	5.255	0.000	0.722	1.786

1. Explain the relationship between the independent and dependent variable.

Answer:

2. Write a regression equation for forecasting the number of covers at the MacHall Caf.

Answer:

3. Assuming 3000 rooms have been pre-sold for January 2017 with an average guest occupancy of 1.5 per room, forecast the number of covers for the MacHall Caf for January 2017.

Answer: