EXERCISE 2: PART The owners of a motel discovered that a defective product was used during construction. It took seven m

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EXERCISE 2: PART The owners of a motel discovered that a defective product was used during construction. It took seven months to correct the defects during which approximately 14 rooms in the 100-unit motel were taken out of service for one month at a time. We study the effect of repairs on motel occupancy. Variable MOTEL PCT is the percentage of motel occupancy and variable REPAIR is an indicator (dummy) variable taking the value 1 during the repair period and 0 otherwise. The econometric model under study is the following MOTEL_PCT-6₂ +6₂REPAIR+e where e is the error term, 0, and O2 are parameters to be estimated. The STATA output obtained from the least-squares estimation of the model above is as follows: regress sotel pet repair 85 Source Model Residual Total repair 882.928029 4118.51357 5001.4414 df MI 1 882.928029 23 179.065607 24 200.3934 Number of obs F(1, 23) Prob > F R-aquared Adj R-squared Root MSE 25 4.93 0.0365 0.1765 0.1407 13.382 Coet. Dtd. Err. t PILI 195% Cont. Intervall -13.23571 5.960615 -2.22 0.037 -25.56619 -19052429 3.15406) 25,16 0.000

Question 16 We denote by MOTEL PCTHAT, the estimated percentage of motel occupancy. Write down the expression of the fitted regression equation when REPAIR-O: Blank 1 Blank 1 Add your answer Blank 1 Add your answer Question 17 We denote by MOTEL PCTHAY, the estimated percentage of motel occupancy. Write down the expression of the fitted regression equation when REPAIR-1 (Please enter two decimals) Blank 1 Question 18 Explan how the last two answers help explain the effect of vanatile REPAIR on MOTEL PCT 3 Points Questions Filler (29 your answe 3 Points 3 Points

Use the editor to format your answer. Question 19 What is the coefficient of determination? (please enter four decimals) Blank 1 Blank 1 Add your answer Question 20 What information does this coefficient of determination give us about the model? Explain. the the editor to format your answer Question 21 Give 90% interval estimate for the slope of the regression (Please enter two decimals Blank 1 4 Points 6 Points 4 Points

Question 22 Give an interpretation of the interval estimate for the slope of the regression. Have we estimated the repairs on motel occupancy relatively precisely or not? Explain. Use the editor to format your answer EXERCISE 2: PARTI The motel wishes to claim economic damages because the faulty materials led to repairs that cost them customers. The manager wants to make his case clearly to the insurance expert. So the economic consultants test the following null hypothesis at the 5% level of significance #14,2-3 against the alternative hypothesis 3 Points where is the slope of the linear regression performed above Questions Fier (29) .

Question 22 Give an interpretation of the interval estimate for the slope of the regression. Have we estimated the repairs on motel occupancy relatively precisely or not? Explain. Use the editor to format your answer EXERCISE 2: PARTI The motel wishes to claim economic damages because the faulty materials led to repairs that cost them customers. The manager wants to make his case clearly to the insurance expert. So the economic consultants test the following null hypothesis at the 5% level of significance #14,2-3 against the alternative hypothesis 3 Points where is the slope of the linear regression performed above Questions Fier (29) .

Question 26 Based on this test, what would you tell the insurance expert? Use the editor to format your answer Question 28 3 Points Question 27 The insurance expert casts doubt on your analysis because he says you don't have enough observation points to carry out your test. so you decide to take his point seriously and decide to test the validity of your method. To do that, you need to make sure that your t-test is well defined by testing the normality of the residuals. What is the name of the test you should conduct? Blank 1 Blank 1 Add your answer Questions Filter (29) 3 Points 3 Points

Question 28 The summary statistics of your model residuals are reported below: residuals, tail Blank 1 ***** 25% A True Pastin -3.901 -.A (B) false -M4.45 -18.55 Jes WEE M Blank 1 Add your answer residuals You remember the normality test statistic is Smallest JERUS -34.14427 -16.45 Largest 16.3 4 35 4.-7 Leve Question 29 The 13.05.230-25 172. The normally test shows that your analysis was valid 3 Points what is the value or the test statistic? (Please enter two decimals) 3 Points