An airline developed a regression model to predict revenue from flights that connect "feeder" cities to its hub airport. The response in the model the revenue generated by flights operating to the feeder cities (in thousands of dollars per month), and the two explanatory variables are the air distance between the hub and feeder city (Distance, in miles) and the population of the feeder city (in thousands). The least squares regression equation based on data for 37 feeder locations last month is Estimated revenue = 81 +0.3Distance +1.4Population with R² = 0.75 and se = 31.2. Complete parts a through d. C (a) The airline plans to expand its operations to add an additional feeder city. The first possible city has population 150,000 and is 275 miles from the hub. A second possible city has population 180,000 and is 250 miles from the hub. Which would you recommend if the airline wants to increase total revenue? The first city The second city (b) What is the interpretation of the intercept in this equation? A. The intercept estimates fixed revenue based upon the distance between the hub and feeder city. OB. The intercept estimates fixed revenue based upon the population of the feeder city. OC. The intercept estimates fixed revenue regardless of distance or population, such as earnings from air freight. OD. An interpretation of the intercept cannot be determined given the data.
An airline developed a regression model to predict revenue from flights that connect "feeder" cities to its hub airport. The response in the model the revenue generated by flights operating to the feeder cities (in thousands of dollars per month), and the two explanatory variables are the air distance between the hub and feeder city (Distance, in miles) and the population of the feeder city (in thousands). The least squares regression equation based on data for 37 feeder locations last month is Estimated revenue = 81 +0.3Distance +1.4Population with R² = 0.75 and se = 31.2. Complete parts a through d. C (a) The airline plans to expand its operations to add an additional feeder city. The first possible city has population 150,000 and is 275 miles from the hub. A second possible city has population 180,000 and is 250 miles from the hub. Which would you recommend if the airline wants to increase total revenue? The first city The second city (b) What is the interpretation of the intercept in this equation? A. The intercept estimates fixed revenue based upon the distance between the hub and feeder city. OB. The intercept estimates fixed revenue based upon the population of the feeder city. OC. The intercept estimates fixed revenue regardless of distance or population, such as earnings from air freight. OD. An interpretation of the intercept cannot be determined given the data.
MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
Section: Chapter Questions
Problem 1P
Related questions
Question
Transcribed Image Text:An airline developed a regression model to predict revenue from flights that connect "feeder" cities to its hub airport. The response in the model is the revenue generated by flights operating to the
feeder cities (in thousands of dollars per month), and the two explanatory variables are the air distance between the hub and feeder city (Distance, in miles) and the population of the feeder city (in
Se = 31.2. Complete
thousands). The least squares regression equation based on data for 37 feeder locations last month is Estimated revenue = 81 +0.3Distance + 1.4Population with R² = 0.75 and
parts a through d.
(a) The airline plans to expand its operations to add an additional feeder city. The first possible city has population 150,000 and is 275 miles from the hub. A second possible city has population
180,000 and is 250 miles from the hub. Which would you recommend if the airline wants to increase total revenue?
The first city
The second city
(b) What is the interpretation of the intercept in this equation?
A. The intercept estimates fixed revenue based upon the distance between the hub and feeder city.
B. The intercept estimates fixed revenue based upon the population of the feeder city.
C. The intercept estimates fixed revenue regardless of distance or population, such as earnings from air freight.
D. An interpretation of the intercept cannot be determined given the data.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
Recommended textbooks for you
MATLAB: An Introduction with Applications
Statistics
ISBN:
9781119256830
Author:
Amos Gilat
Publisher:
John Wiley & Sons Inc
Probability and Statistics for Engineering and th…
Statistics
ISBN:
9781305251809
Author:
Jay L. Devore
Publisher:
Cengage Learning
Statistics for The Behavioral Sciences (MindTap C…
Statistics
ISBN:
9781305504912
Author:
Frederick J Gravetter, Larry B. Wallnau
Publisher:
Cengage Learning
MATLAB: An Introduction with Applications
Statistics
ISBN:
9781119256830
Author:
Amos Gilat
Publisher:
John Wiley & Sons Inc
Probability and Statistics for Engineering and th…
Statistics
ISBN:
9781305251809
Author:
Jay L. Devore
Publisher:
Cengage Learning
Statistics for The Behavioral Sciences (MindTap C…
Statistics
ISBN:
9781305504912
Author:
Frederick J Gravetter, Larry B. Wallnau
Publisher:
Cengage Learning
Elementary Statistics: Picturing the World (7th E…
Statistics
ISBN:
9780134683416
Author:
Ron Larson, Betsy Farber
Publisher:
PEARSON
The Basic Practice of Statistics
Statistics
ISBN:
9781319042578
Author:
David S. Moore, William I. Notz, Michael A. Fligner
Publisher:
W. H. Freeman
Introduction to the Practice of Statistics
Statistics
ISBN:
9781319013387
Author:
David S. Moore, George P. McCabe, Bruce A. Craig
Publisher:
W. H. Freeman