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Good evening everyone,

I am working on the following self-test question for regressions, but my answer 26.901 seemed really different from the model answer 27.2155.

Question

A hotel derives its gross income from its hotel and restaurant operations. The owners are interested in the relationship between the number of rooms occupied on a nightly basis and the revenue per day in the restaurant . Below are a sample of 25 days (Monday through Thursday) from last year showing the restaurant income Y in thousand dollars and number of rooms occupied X

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My Attempt

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Appreciate any advice please.

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    $\begingroup$ Because it sounds like the data are available to you, I would like to suggest you drop them into any regression or curve fitting software and look at its answer. As it stands, your question is barely intelligible because you have not stated explicitly what you are trying to find and all the relevant statistics have to be dug out of your calculations. Your readers would more readily come to your aid if they had independent confirmation that you are answering the question that was asked of you and that your answer agrees with the software. $\endgroup$
    – whuber ♦
    Commented Apr 28, 2014 at 20:09
  • $\begingroup$ @whuber oh my. just noticed that I left out a big chunk of the question. Thanks for pointing out. $\endgroup$
    – user1275515
    Commented Apr 28, 2014 at 20:17
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    $\begingroup$ @Alexis thanks for the heads-up. Have went on to accept the answers and upvotes for some of the questions. Will continual to do so more diligently. Thanks for the advice and guidance . =) $\endgroup$
    – user1275515
    Commented Apr 28, 2014 at 20:32
  • $\begingroup$ +1 It's a good policy to be particularly diligent about recognizing helpful answers. When fake internet points are the only thanks you can give for all the free help ("thanks"-only comments sometimes seem to be regarded by the SE people as 'chat'), you need to give all the fake internet points you can. Besides which, it improves the ability of people to make the site better (so it's especially important to upvote helpful answers from people with lower reputation; you not only thank/encourage them, you make it easier for them to help in more ways). $\endgroup$
    – Glen_b
    Commented Apr 28, 2014 at 23:48
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    $\begingroup$ Leaving aside the small error identified in the answer, there's a broader issue to keep in mind: Given there's more than one way to compute SSR and given that 906 and 89.8 are apparently only to 3 significant figures, if you don't use an identical calculation approach as the person who gave you the answer, might more generally find answers only match to about 3 significant figures anyway. $\endgroup$
    – Glen_b
    Commented Apr 29, 2014 at 0:00

1 Answer 1

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Looks like you either made a mistake when putting the numbers into your calculator or reading the output from your calculator. When you computed the slope, you should have calculated it to be $.08696$ instead of $.08596$. This small mistake carries through and screws up your other calculations as well. I suppose the lesson here is be really careful when putting numbers into your calculator and/or don't round intermediate calculations.

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  • $\begingroup$ thanks! thats indeed a very careless mistake of mine which will cost me a whole lot; unfortunately. Many thanks once again $\endgroup$
    – user1275515
    Commented Apr 29, 2014 at 13:02

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