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Regression Model: Predicting airfares on new routes
Scenario: !"#"ral air$%rts ha#" %$"n"& in 'a(%r )iti"s in U!A* %$"nin+ th" 'ar,"t %r n". r%ut"s/ In %r&"r t% $ri)" li+hts %n th"s" r%ut"s a 'a(%r airlin" )%ll")t"& in%r'ati%n in%r'ati%n %n 6 air r%ut"s in th" Unit"& !tat"s/
**. Correlation is signii)ant at te $.$1 le+el (!taile"#.
Inferences: 1/ At"r "3$l%rin+ th" nu'"ri)al #arial"s I "ll th"r" is a si+nii)ant a'%unt % )%rr"lati%n "t.""n Far" an& &istan)"* )%u$%n an& Far"/ 2/ 8n &ra.in+ a s)att"r $l%t* ." )an $r"&i)t that .ith a )han+" in &istan)" th" ar" is )han+in+ in $%siti#" &ir")ti%n/ / Distan)" )an " a "st sin+l" $r"&i)t%r %ut all %th"r #arial"s %r Far"/
2/ 3$l%r" th" )at"+%ri)al $r"&i)t%rs >"3)lu&in+ th" irst 4? )%'$utin+ th" $"r)"nta+" % li+hts in "a)h )at"+%r/ Cr"at" a $i#%t tal" that +i#"s th" a#"ra+" ar" in "a)h )at"+%r/ !%luti%n Column Labels Controlled Count of SLOT
Free
182
percentage
456 71.47 %
28.53%
Grand Total 638 100%
This sas that in 1/42 % all )as"s "n&$%int air$%rt is r"" an& 2/5 is sl%t )%ntr%ll"&/ Column Labels No
Yes
Count of SW
444
Percentile
69.59%
14 30.41 %
Grand Total 638 100%
This sas that %nl 0/41 % all air r%ut"s is s"r#"& !%uth "st Air.as an& 6E/5E % all air r%ut"s ar" s"r#"& r"'ainin+/ Column Labels No
Yes
Count of !"C"T#ON
468
percentage
73.35%
1$% 26.65 %
Grand Total 638 100%
This sas that in 26/65 % all r%ut"s is ;a)ati%n r%ut" an& /5 is n%t a ;a)ati%n r%ut"/
Column Labels
Count of G"T' percentage
Constra&ned 124 19.44%
Free 514 80.56%
Grand Total 638 100%
This sas that in 0/56 % all )as"s "n&$%int air$%rt is r"" an& 2/5 is GAT )%nstrain"&/
South Westren Aira!s (o) "*era+e of Labels F"(' "o 188.1827928 8,382268% 4 #es Grand 16%,8$66$$ Total 1
A#"ra+" ar" in r%ut"s )%#"r"& !%uth "str"n Air.as is E/ $AA&'(" (o) "*era+e of Labels F"(' "o 173.5525 125,8%882 4 #es Grand 16%,8$66$$ Total 1
A#"r+" ar" in r%ut"s % ;a)ati%n is 125/E S)(& (o) "*era+e of Labels F"(' 186,%535 ontrolle 6 * +ree 150.8256798 Grand 16%,8$66$$ Total 1
A#"ra+" ar" in sl%t )%ntr%ll"& r%ut"s is 16/05 (o) Labels onstrain e*
,ate "*era+e of F"(' 13,12%32 3
+ree Grand Total
153.0959533 16%,8$66$$ 1
A#"ra+" ar" in Gat" )%ntr%ll"& r%ut"s is 1E/1
/ +in* a -o*el or pre*icting the a/erage are on a ne route Solution •
Firstl )%n#"rt all th" strin+s int% nu'"ri)al %r'at as %ll%.s ategorical pre*ictor $acation SW ,ate
In"r"n)"s r%' M%&"l !u''ar 1/ A&(ust"& < !uar"/2 It sas that /2 % th" #arian)"s in ar" )an " $r"&i)t"& th" in&"$"n&"nt #arial"s/
ANOVAb ,o"el 1
S0 o S-ares Regression Resi"al Total
"
,ean S-are
'9%4'&.&
1&
'$%.4%
7'$$1.174
%4
1'.$1
&%'14'4.7$9
%&7
F
Sig.
177.11$
.$$$a
a. Pre"i)tors2 (Constant#3 PA3 NE53 6ATE3 ACATION3 DISTANCE3 S8INCO,E3 SOT3 :I3 E8INCO,E3 S53 S8POP3 E8POP3 COUPON ;. De
In"r"n)"s r%' AN8;A Tal" Te reslt o F!test sa=s tat Nll :=t P +ale is less tan te $.$ (P?$.$# De)ision2 Re/e)t te Nll :=
Coefficientsa Stan"ar"i@e" Unstan"ar"i@e" Coei)ients ,o"el 1
>
St". Error
(Constant#
1.%99
7.&79
COUPON
&.7
1.194
!.&9%
ACATION S5
Coei)ients >eta
t
Sig. .4%4
.%4&
.$1$
.&$'
.7'
1.'7
!.$4
!1.77
.$
!&.%44
&.%17
!.$7
!9.'
.$$$
!4$.97$
&.744
!.4'
!1$.944
.$$$
:I
.$$'
.$$1
.191
'.1$
.$$$
S8INCO,E
.$$1
.$$1
.$7
.&&4
.$$
E8INCO,E
.$$1
.$$$
.$'&
&.%%%
.$$$
S8POP
&.4$1E!%
.$$$
.1&
.1&
.$$$
E8POP
4.&%&E!%
.$$$
.17
.7'1
.$$$
SOT
!1%.4
&.'47
!.$97
!4.&
.$$$
6ATE
!$.79
4.$$
!.1$7
!.14&
.$$$
DISTANCE
.$7
.$$4
.%&7
$.94'
.$$$
PA
.$$$
.$$$
!.11
!.9%9
.$$$
NE5
a. De
In"r"n)"s F%r a $%siti#" )%"i)i"nt % In&"$"n&"nt ;arial" >"ta?* th" ar" in)r"as" .ith in)r"as" in #alu" % In&"$"n&"nt ;arial"/ Th" a'%unt % )han+" is &"$"n&"nt %n "ta/ F%r a n"+ati#" )%"i)i"nt % In&"$"n&"nt ;arial" >"ta?* th" ar" &")r"as"s .ith in)r"as" in #alu" % In&"$"n&"nt ;arial"/ Th" a'%unt % )han+" is &"$"n&"nt %n "ta/ •
•
Far" $r"&i)t"& %r n"3t uart"r H F 12/6EE/55C%u$%n-2/E6N".-5/644;a)ati%n40/E0!0/009I0/001!7INC8M0/0017INC8M >/401-6?!7P8P >4/6-6?7P8P-16/245!l%t20/5EGat"0/05Distan)"0/00PA=
4/ sing -o*el 3 pre*ict the a/erage are on a route ith the olloing characteristics (P("1.202 "W3 $AA&'(""o SW"o '4442.141 S '"( 28760 '"(27664 S P(P4557004 P(P3195503 S)(&+ree ,A&+ree PA:12782 ;'S&A"1976 -iles. Solution
H F 12/6EE/551/202-2/E6-5/644040/E000/004442/1410/0012600/0012664 >/401-6?455004>4/6-6?1E550-16/245120/5E10/051E60/00122
