Question: Hello Experts, Please help solve this problem. Click here for data set >>> https://docs.google.com/spreadsheets/d/1Jq0jN0TiDF0NTra1klAINmP-MqjgRbwOK17pZVcZcjY/edit?usp=sharing Please take screen capture of the regression output and attach to
Hello Experts, Please help solve this problem.
Click here for data set >>> https://docs.google.com/spreadsheets/d/1Jq0jN0TiDF0NTra1klAINmP-MqjgRbwOK17pZVcZcjY/edit?usp=sharing
Please take screen capture of the regression output and attach to the answer
Dependent variable:
Variable Description
PricePrice of staying per night
Independent variables:
Variable Description
Room_typeType of accommodation, =0 if it is a "shared room", =1 if it's an entire home or apartment
ReviewsNumbers of reviews on website
Overall_SatisfactionAverage satisfaction rated by customers
NightsNumber of nights stayed by customers
BedroomNumber of bedrooms
Estimate the following model.
Ln(Price) = 0 + 1Room_type + 2Reviews + 3Overall_Satisfaction + 4Nights + 5Bedroom
(Note: The dependent variable is Ln(Price) and not Price)
**********************************************************************************************
Questions:
(a) Report and interpret your estimates for 1,2 and 5.
(b) Based on the estimated regression model predict the price (in $) per night for an "entire home or apartment" in a 4-bedroom apartment that has received 15 reviews. The overall satisfaction is 4.5, number of nights is equal to 3.
(c) Construct a 95% confidence interval for your prediction done in part (b).
(d) Using the estimated regression, test the hypothesis that "entire home or apartment" price is two-and-a-half times higher than a "shared room". Write down the null and alternate hypothesis and report your conclusions.
(e) In the regression model that you have estimated, the impact of number of reviews on price is the same irrespective of room_type. Modify your regression model to answer the following question...
Is the impact of number of reviews on price the same for "shared rooms" versus "entire home or apartment"?
(f) There is a belief amongst customers that staying in a "non-shared room" ("entire home or apartment") in a facility with certain number of bedrooms costs the same as a "shared room" in a facility with two additional bedrooms. Given your data, do you have support for this belief. Justify your answer with an appropriate test.
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
