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The manager of an amusement park would like to be able to predict daily attendance in order to develop more accurate plans about how much food to order and how many ride operators to hire. After some consideration, he decided that the following three factors are critical:

Yesterdayâ€™s attendance

Weekday or weekend

Predicted weather

He then took a random sample of 40 days. For each day, he recorded the attendance, the previous dayâ€™s attendance, day of the week, and weather forecast.

The first independent variable is interval, but the other two are nominal. Accordingly, he created the following sets of indicator variables:

a. Conduct a regression analysis.

b. Is this model valid? Explain.

c. Can we conclude that weather is a factor in determining attendance?

d. Do these results provide sufficient evidence that weekend attendance is, on average, larger than weekday attendance?

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