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Question: 6 the following regression equation examines the relation between hotel...

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6. The following regression equation examines the relation between hotel prices (in dollars per night) and the number of short-term rental listings (e.g., Airbnb) in the city hotel price 150 0.018 x ST rentals a) Interpret the coefficient on the number of short-term rentals. b) How would these coefficients change if the number of rentals was expressed in thousands? c) What is the predicted hotel price in a city with 1,000 short-term listings? d) How many listings would there need to be in a city in order for the predicted hotel price to be 50 dollars? Suppose that a hotel in a city with 1,500 short term listings costs $110 dollars. What is the error in the predicted hotel price? e) f) Can you conclude from this regression that short-term rentals cause a decrease in hotel prices? Explain your answer. Next, you regress the natural log of hotel prices on the natural log of the number of short- term rentals and obtain the regression equation shown below: InChotel price) 5.2-0.046 x In(ST_rentals) g) Interpret the coefficient on short-term rentals in a sentence. h) What is the predicted hotel price (in dollars per night) in a city with 1,000 short-term listings?
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