use the appropriate one in a given situation. 13. Exercises 14. Hotel occupancy rates. A large motel chain has developed a regression model to predict the occupancy rate (the average daily percentage of rooms that are occupied) of its motels. From data gathered over the past year they estimate the following regression model: Y = 42-.003X1+2X2 (having R2 = .5), where Y = occupancy rate (a number from 0 to 100), X1 = total amount spent on advertising (in dollars), and X2 is a dummy variable that equals 1 if the motel is a franchised location and equals 0 for a non-franchised location. The data fit the model reasonably well. (a) Give managerial interpretations for the coefficients and R2. (b) What kind of occupancy rate would you forecast for a franchised location spending $2,000 in advertising? (c) Based on the coefficient -.003 can we conclude advertising does not work very well at raising occupancy rates? Explain. (d) Can we say that franchised locations overall on average have a higher average occupancy rate than the non-franchised locations