Concept explainers
Ambiance of 5-star hotels. Although invisible and intangible, ambient conditions such as air quality (x1), temperature (x2), odor/aroma (x3), music (x4), noise level (x5). and overall image (x6) may affect guests' satisfaction with their stay at a hotel. A study in the Journal of Hospitality Marketing & Management (Vol. 24, 2015) was designed to assess the effect of each of these ambient factors on customer satisfaction with the hotel (y). Using a survey, researchers collected data for a sample of 422 guests at 5-star hotels. All variables were measured as an average of several 5-point questionnaire responses. The results of the multiple regression are summarized in the table on the next page.
- a. Write the equation of a first-order model for hotel image (y) as a
function of the six ambient conditions.Table for Exercise 12.9
- b. Give a practical interpretation of each of the β-estimates shown.
- c. A 99% confidence interval for β6 is (.350, .576). Give a practical interpretation of this result.
- d. Interpret the value of adjusted R2.
- e. Is there sufficient evidence that the overall model is statistically useful for predicting hotel image (y)? Test using α = .01.
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