Question 13.28

13.28 Hotel occupancy rate.

Continue the previous exercise.

hotel

  1. Make indicator variables for the months of the year, and fit a linear trend along with 11 indicators to the data series. Report your estimated model.
  2. Does the regression output suggest the presence of a trend? Explain how you reach your conclusion.
  3. Based on the fit, make a forecast for occupancy rate for July 2014.