QUESTION 31 A vacation resort has collected data on 150 resort guests to study their spending behavior. In particular, they are interested in whether their rewards program increases guest spending. Their data set includes the amount each guest spent during their 3-day stay, whether the guest traveled from out of state, number of children, number of previous stays, age, and whether the guest brought any pets or is a member of the resort's rewards program. Data Midterm 2 Fall 2020.xlsx (A) Create a dummy variable for rewards program membership and run a simple linear regression model with this variable. Interpret your regression coefficient (B) Interpret the RP of your regression, (C) Create suitable dummy variables for the remaining non-numeric variable in the data set. Run a multiple regression model which includes all explanatory variables from the data file. Interpret all regression coefficients that are significant at the 5% level. (D) Which model would you choose? Explain your choice. (E) You also suspect that the effect of the rewards membership on guest purchases depends on whether or not the guest travels from out of state. Create a suitable interaction variable and add it to your model from part (C). Interpret the coefficient of the Interaction variable AutoSave OFF Data Midterm 2 Fall 203 Home Insert Draw Page Layout Formulas Data Review View Tell me X Calibri (Body) 11 ~ A == General w Wrap Text Merge & Center Paste anav $ % ) B1 fx Out of state E F 1 K M N O A B D 1 Guest Out of statilof children vious visits 2 1 1 1 1 3 2 0 2 1 4 3 0 2 0 5 4 0 7 6 5 1 3 0 7 6 1 2 0 7 1 4 0 9 8 0 2 10 9 4 0 11 10 2 0 12 11 2 2 13 12 1 8 14 13 1 0 15 14 0 6 16 15 1 4 0 17 16 1 3 0 18 17 0 1 0 19 18 0 0 9 20 19 1 2. 6 21 20 0 2 3 21 0 1 2 23 22 1 3 3 24 23 O 0 0 25 24 0 3 26 25 1 2 1 27 26 1 1 1 28 27 1 6 29 28 1 0 0 30 29 0 6 31 30 0 1 7 32 2 0 33 32 a 0 34 1 1 B 35 34 2 2 36 35 D 0 37 36 0 0 38 32 0 1 2 39 38 0 2 4 40 39 0 1 0 41 90 1 3 2 42 41 1 1 42 1 43 1 O D Data + Age Pets 26 Yes 38 No 35 No 40 No 28 Yes 24 No 27 No 33 Yes 62 No 31 No 34 No 37 No 37 No 58 No 33 NO 27 NO 30 Ne 37 No 44 No 29 No 36 No 28 Yes 45 No 33 Yes 24 Yes 27 Yes 60 No 48 No 40 No 33 No 35 No 44 No G H Rewards Purchases No $1,518 $1,375 $1.461 $1,188 $1,595 No $1,342 Yes $1,925 No $1.188 No $1,496 No $1,298 No $1,179 No $1,377 No $1,373 No $1,527 Yes $1,859 Yes $1.738 No $1.188 No $1,302 No $1,434 No $1,302 No $1,298 No $1,551 No $1,254 No $1.529 NO $1,353 Na $1,298 No $1.857 No $1,654 No $1.495 No $1,452 No $1,265 NO $1.558 No $1,364 No $1,707 No $1,509 NO $1.540 Yes $1,522 NO $1.254 No $1,298 No $1,683 No $1.505 NO 52,057 Yes $1,694 43 Yes 46 No 42 No 47 No 25 No 30 No 40 No 26 Yes 32 No 51 No 35 No AutoSave OFF A BESU- Data Midten Home Insert Draw Page Layout Formulas Data Review View Tell me Calibri (Body) V 11 ~ A A == a Wrap Text Gener y Paste BIU A A Merge & Center $ A B1 fx Out of state B D E F G 1 K M No 45 16 1 1 47 0 1 2 0 O 44 45 46 47 48 49 50 51 52 53 54 55 56 52 1 0 1 0 0 0 1 0 3 0 10 0 0 3 10 No No No No No No 3 0 49 50 51 12 53 54 59 56 57 98 59 Yes O O 37 No 44 No 53 Yes 40 No 51 Yes 42 No 53 No 58 Yes 44 No 31 No 64 No 47 No 37 No 46 No 55 No 19 No 51 37 No 30 Yes 26 No $1,452 $1.993 $1,707 $1,316 $1,373 $1,496 $1,30 $1,562 $1.496 $1,280 $1,105 $1,285 $1311 $1,474 $1,496 $1,102 $1.49 $1,639 $1,652 No No 0 1 Ne 0 1 0 0 0 0 O O 1 2 2 2 1 1 O 3 03 61 5 09 19 19 09 0 0 8 Yes No Na Ne Ne No No M Y 0 O 2 1 1 512 0 1 4 55 66 SES 65 67 60 57 Yes SIN NS 44 Na 1 4 OL 1 32 23 1 0 O 3 2 $1.641 $1,310 $1,1 $1.03 $1,442 SAN $1.40 $1.355 51.843 $1. $1,450 NE es 0 72 TS 34 4 TS 1 77 0 . DO 35 43 46 No Na Na O 1 2 77 38 23 SIGG 51453 23 0 . ETS 1 . o No Ne No No Na 31 0 30 Ne 29 ho CE 1 1 1 4 > 1 3 2 51,452 $1,733 $1,716 4 25 ON TE 36 14 SLI 1 D BE 0 7 0 $1.404 0 14 Na + MacBook Air 000 30 esc 0 F 12 14 35 # % & 2 AutoSave OFF Home Insert Draw Page Layout Formulas Data Review View Tell me X Calibri (Body) v 11 y ' ' Wrap Text V Paste BIU v a. Av ilil Merge & Center B1 x fx Out of state B D E F G H 1 K L 89 88 89 90 91 92 90 91 92 93 1 1 1 0 0 1 1 1 0 2 1 0 2 0 0 1 1 1 1 1 1 0 1 0 0 2 1 2 0 1 2 0 0 2 0 0 0 0 3 104 No No No Yes No No No No No No No No No No No Yes No No No No NO No No No Yes 0 1 0 1 4 1 0 0 2 94 95 94 96 95 97 96 98 97 99 98 100 99 101 100 102 101 103 102 103 105 104 106 105 107 106 108 107 109 108 110 109 111 110 111 113 113 115 114 116 116 117 119 120 121 120 121 123 122 124 124 126 125 26 Yes 28 Yes 35 No 47 No 51 No 26 Yes 33 No 27 Yes 34 NO 29 No 27 Yes 43 No 36 No 38 No 60 No 43 No 48 No 32 No 31 Yes 29 No 35 No 37 No 43 No 33 No 58 No 44 No 37 No 48 NO 26 Yes 25 No 38 No 41 No 29 Yes 59 No 29 Yes 27 No 30 NO 34 No 35 No SO NO 33 Ne 5 O 3 1 0 0 5 5 3 0 2 0 12 0 5 4 7 $1,628 $1,496 $1,602 $1,681 $1,553 $1,518 $1,342 $1,320 $1,641 $1,769 $1,562 $1,540 $1,672 $1.553 $1,500 $1,901 $1,588 $1,522 $2,079 51.593 $1,650 $1.804 $1.566 $1,751 $2,079 $1.870 $2,015 $1,536 51.971 $1,672 $1,540 $1.760 $1,584 $1,153 $1,719 $1,782 $1,738 51.580 51.430 $1,628 51.430 1 1 O 1 1 1 1 Yes NO 1 1 1 0 1 2 2 0 3 6 0 O 0 o 0 1 1 0 1 1 2 2 2 1 0 NO No Yes No No NO Yes No No NO Ne NO No No 0 4 2 D 5 2 6 1 O o 1 0 0 120 128 3 19 131 1 1 36 No $1.540 Data + AutoSave OFF Draw Page Layout Home Insert Formulas Data Review View Tell me X Calibri (Body) 11 == Wrap Text Paste BIU A ES Merge & Center B1 fo Out of state B D E F G H 131 132 o on 133 6 132 133 134 135 136 137 138 139 140 134 135 136 137 138 139 140 141 142 1 1 0 1 1 1 1 1 1 1 1 1 1 1 NO ONMOOO 1 9 5 2 1 5 33 No 47 No 51 No 42 No 31 Yes 62 No 46 Yes 60 No 43 Yes 53 No 38 No 39 No 35 No 40 No 32 No 33 Yes 30 Yes 37 Yes 30 Yes 32 No Yes No No No No No No No No No No No No NO No Yes Yes Yes Yes Yes $1,918 $1,487 $1,553 $1,773 $1,738 $1,914 $1,848 $1,773 $1,936 $1.751 $1,747 $1,980 $1.932 $1,672 $1,717 $2,057 $2.484 $1,936 $2,079 $2,156 2 142 143 143 145 146 147 148 149 1 1 144 145 146 147 148 149 150 MOONNO 3 3 3 1 1 1 150 1 1 0 4 3 151 152 153 154 156 157 159 160 161 162 1646 167 120 173 114 Data QUESTION 31 A vacation resort has collected data on 150 resort guests to study their spending behavior. In particular, they are interested in whether their rewards program increases guest spending. Their data set includes the amount each guest spent during their 3-day stay, whether the guest traveled from out of state, number of children, number of previous stays, age, and whether the guest brought any pets or is a member of the resort's rewards program. Data Midterm 2 Fall 2020.xlsx (A) Create a dummy variable for rewards program membership and run a simple linear regression model with this variable. Interpret your regression coefficient (B) Interpret the RP of your regression, (C) Create suitable dummy variables for the remaining non-numeric variable in the data set. Run a multiple regression model which includes all explanatory variables from the data file. Interpret all regression coefficients that are significant at the 5% level. (D) Which model would you choose? Explain your choice. (E) You also suspect that the effect of the rewards membership on guest purchases depends on whether or not the guest travels from out of state. Create a suitable interaction variable and add it to your model from part (C). Interpret the coefficient of the Interaction variable AutoSave OFF Data Midterm 2 Fall 203 Home Insert Draw Page Layout Formulas Data Review View Tell me X Calibri (Body) 11 ~ A == General w Wrap Text Merge & Center Paste anav $ % ) B1 fx Out of state E F 1 K M N O A B D 1 Guest Out of statilof children vious visits 2 1 1 1 1 3 2 0 2 1 4 3 0 2 0 5 4 0 7 6 5 1 3 0 7 6 1 2 0 7 1 4 0 9 8 0 2 10 9 4 0 11 10 2 0 12 11 2 2 13 12 1 8 14 13 1 0 15 14 0 6 16 15 1 4 0 17 16 1 3 0 18 17 0 1 0 19 18 0 0 9 20 19 1 2. 6 21 20 0 2 3 21 0 1 2 23 22 1 3 3 24 23 O 0 0 25 24 0 3 26 25 1 2 1 27 26 1 1 1 28 27 1 6 29 28 1 0 0 30 29 0 6 31 30 0 1 7 32 2 0 33 32 a 0 34 1 1 B 35 34 2 2 36 35 D 0 37 36 0 0 38 32 0 1 2 39 38 0 2 4 40 39 0 1 0 41 90 1 3 2 42 41 1 1 42 1 43 1 O D Data + Age Pets 26 Yes 38 No 35 No 40 No 28 Yes 24 No 27 No 33 Yes 62 No 31 No 34 No 37 No 37 No 58 No 33 NO 27 NO 30 Ne 37 No 44 No 29 No 36 No 28 Yes 45 No 33 Yes 24 Yes 27 Yes 60 No 48 No 40 No 33 No 35 No 44 No G H Rewards Purchases No $1,518 $1,375 $1.461 $1,188 $1,595 No $1,342 Yes $1,925 No $1.188 No $1,496 No $1,298 No $1,179 No $1,377 No $1,373 No $1,527 Yes $1,859 Yes $1.738 No $1.188 No $1,302 No $1,434 No $1,302 No $1,298 No $1,551 No $1,254 No $1.529 NO $1,353 Na $1,298 No $1.857 No $1,654 No $1.495 No $1,452 No $1,265 NO $1.558 No $1,364 No $1,707 No $1,509 NO $1.540 Yes $1,522 NO $1.254 No $1,298 No $1,683 No $1.505 NO 52,057 Yes $1,694 43 Yes 46 No 42 No 47 No 25 No 30 No 40 No 26 Yes 32 No 51 No 35 No AutoSave OFF A BESU- Data Midten Home Insert Draw Page Layout Formulas Data Review View Tell me Calibri (Body) V 11 ~ A A == a Wrap Text Gener y Paste BIU A A Merge & Center $ A B1 fx Out of state B D E F G 1 K M No 45 16 1 1 47 0 1 2 0 O 44 45 46 47 48 49 50 51 52 53 54 55 56 52 1 0 1 0 0 0 1 0 3 0 10 0 0 3 10 No No No No No No 3 0 49 50 51 12 53 54 59 56 57 98 59 Yes O O 37 No 44 No 53 Yes 40 No 51 Yes 42 No 53 No 58 Yes 44 No 31 No 64 No 47 No 37 No 46 No 55 No 19 No 51 37 No 30 Yes 26 No $1,452 $1.993 $1,707 $1,316 $1,373 $1,496 $1,30 $1,562 $1.496 $1,280 $1,105 $1,285 $1311 $1,474 $1,496 $1,102 $1.49 $1,639 $1,652 No No 0 1 Ne 0 1 0 0 0 0 O O 1 2 2 2 1 1 O 3 03 61 5 09 19 19 09 0 0 8 Yes No Na Ne Ne No No M Y 0 O 2 1 1 512 0 1 4 55 66 SES 65 67 60 57 Yes SIN NS 44 Na 1 4 OL 1 32 23 1 0 O 3 2 $1.641 $1,310 $1,1 $1.03 $1,442 SAN $1.40 $1.355 51.843 $1. $1,450 NE es 0 72 TS 34 4 TS 1 77 0 . DO 35 43 46 No Na Na O 1 2 77 38 23 SIGG 51453 23 0 . ETS 1 . o No Ne No No Na 31 0 30 Ne 29 ho CE 1 1 1 4 > 1 3 2 51,452 $1,733 $1,716 4 25 ON TE 36 14 SLI 1 D BE 0 7 0 $1.404 0 14 Na + MacBook Air 000 30 esc 0 F 12 14 35 # % & 2 AutoSave OFF Home Insert Draw Page Layout Formulas Data Review View Tell me X Calibri (Body) v 11 y ' ' Wrap Text V Paste BIU v a. Av ilil Merge & Center B1 x fx Out of state B D E F G H 1 K L 89 88 89 90 91 92 90 91 92 93 1 1 1 0 0 1 1 1 0 2 1 0 2 0 0 1 1 1 1 1 1 0 1 0 0 2 1 2 0 1 2 0 0 2 0 0 0 0 3 104 No No No Yes No No No No No No No No No No No Yes No No No No NO No No No Yes 0 1 0 1 4 1 0 0 2 94 95 94 96 95 97 96 98 97 99 98 100 99 101 100 102 101 103 102 103 105 104 106 105 107 106 108 107 109 108 110 109 111 110 111 113 113 115 114 116 116 117 119 120 121 120 121 123 122 124 124 126 125 26 Yes 28 Yes 35 No 47 No 51 No 26 Yes 33 No 27 Yes 34 NO 29 No 27 Yes 43 No 36 No 38 No 60 No 43 No 48 No 32 No 31 Yes 29 No 35 No 37 No 43 No 33 No 58 No 44 No 37 No 48 NO 26 Yes 25 No 38 No 41 No 29 Yes 59 No 29 Yes 27 No 30 NO 34 No 35 No SO NO 33 Ne 5 O 3 1 0 0 5 5 3 0 2 0 12 0 5 4 7 $1,628 $1,496 $1,602 $1,681 $1,553 $1,518 $1,342 $1,320 $1,641 $1,769 $1,562 $1,540 $1,672 $1.553 $1,500 $1,901 $1,588 $1,522 $2,079 51.593 $1,650 $1.804 $1.566 $1,751 $2,079 $1.870 $2,015 $1,536 51.971 $1,672 $1,540 $1.760 $1,584 $1,153 $1,719 $1,782 $1,738 51.580 51.430 $1,628 51.430 1 1 O 1 1 1 1 Yes NO 1 1 1 0 1 2 2 0 3 6 0 O 0 o 0 1 1 0 1 1 2 2 2 1 0 NO No Yes No No NO Yes No No NO Ne NO No No 0 4 2 D 5 2 6 1 O o 1 0 0 120 128 3 19 131 1 1 36 No $1.540 Data + AutoSave OFF Draw Page Layout Home Insert Formulas Data Review View Tell me X Calibri (Body) 11 == Wrap Text Paste BIU A ES Merge & Center B1 fo Out of state B D E F G H 131 132 o on 133 6 132 133 134 135 136 137 138 139 140 134 135 136 137 138 139 140 141 142 1 1 0 1 1 1 1 1 1 1 1 1 1 1 NO ONMOOO 1 9 5 2 1 5 33 No 47 No 51 No 42 No 31 Yes 62 No 46 Yes 60 No 43 Yes 53 No 38 No 39 No 35 No 40 No 32 No 33 Yes 30 Yes 37 Yes 30 Yes 32 No Yes No No No No No No No No No No No No NO No Yes Yes Yes Yes Yes $1,918 $1,487 $1,553 $1,773 $1,738 $1,914 $1,848 $1,773 $1,936 $1.751 $1,747 $1,980 $1.932 $1,672 $1,717 $2,057 $2.484 $1,936 $2,079 $2,156 2 142 143 143 145 146 147 148 149 1 1 144 145 146 147 148 149 150 MOONNO 3 3 3 1 1 1 150 1 1 0 4 3 151 152 153 154 156 157 159 160 161 162 1646 167 120 173 114 Data