Answer:
Step-by-step explanation:
Hello!
A linear regression for the price of renting a room in a hotel and the rating said hotel received was calculated from a sample of n= 25 hotels.
The theoretical regression model is E(Y)= α + βXi
And the estimated regression equation is: ^Y= a + bXi
Where:
The estimator for the slope is b= 125
And the estimator of the Y-intercept is a= -400
So for this example the estimated regression line for the price of the hotel rooms given the ratings of the hotel is:
^Y= -400 + 125 Xi
^Y= represents the estimated average price of a hotel room
a= -400 is the estimated average price of a hotel room when the rating of the hotel is zero.
b= 125 is the modification of the estimated average price of a hotel room when the rating of the hotel increases one unit.
I hope this helps!
