Chapter 12.3, Problem 12.9ACB

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.

1. 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

1. b. Give a practical interpretation of each of the β-estimates shown.
2. c. A 99% confidence interval for β₆ is (.350, .576). Give a practical interpretation of this result.
3. d. Interpret the value of adjusted R².
4. e. Is there sufficient evidence that the overall model is statistically useful for predicting hotel image (y)? Test using α = .01.