Question: OccRate = 0 + 1 FEB + 2 MAR + 3 APR + 4 MAY + 5 JUN + 6 JUL + 7 AUG+ +
OccRate= 0 + 1 FEB + 2 MAR + 3 APR + 4 MAY + 5 JUN + 6 JUL + 7 AUG++ 8 SEP + 9 OCT + 10 NOV + 11 DEC + 12 XchgBrit + 13 XChgEuro
+ 14 Time + 15 TimeSq +
OccRate = occupancy rate at Disney area hotels (in percent)
FEB thru DEC = eleven dummy variables for the months February to December (January being the default)
XChgBrit = currency exchange rate between the British pound and the U.S. dollar
XChgEuro = currency exchange rate between the Euro and the U.S. dollar
Time = a time trend variable equal to 1 for the first month to 67 for final month in sample
TimeSq = the square of the Time variable
The regression equation is
OccRate = 130 + 11.6 FEB + 13.7 MAR + 11.6 APR + 6.67 MAY + 10.7 JUN + 16.1 JUL + 14.3 AUG 1.62 SEPT + 4.29 OCT 3.80 NOV 9.32 DEC
13.7 XChgBrit 16.1 XChgEuro 0.517 Time + 0.00386 TimeSq
Predictor Coef Stdev tratio p
Constant 130.39 22.69 5.75 0.000
FEB 11.565 2.055 5.63 0.000
MAR 13.729 2.070 6.63 0.000
APR 11.616 2.073 5.60 0.000
MAY 6.666 2.079 3.21 0.002
JUN 10.703 2.093 5.11 0.000
JUL 16.060 2.086 7.70 0.000
AUG 14.259 2.205 6.47 0.000
SEPT 1.620 2.170 0.75 0.459
OCT 4.287 2.170 1.98 0.054
NOV 3.805 2.176 1.75 0.086
DEC 9.317 2.176 4.28 0.000
XchgBrit 13.696 5.813 2.36 0.022
XChgEuro 16.097 7.818 2.06 0.045
Time 0.5166 0.1321 3.91 0.000
TimeSq 0.003856 0.001749 2.20 0.032
Because B15 (greater than, less than, or equal to) 0, conclude that OccRate is a (minimum, maximum, or constant) in month (25, 50, 67, or 75).
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