The figure shows part of the full regression model (refer to Southwest Full Model if you want to recreate the output):
|
|
|
Constant
|
12.69939153
|
|
COUPON
|
3.754890986
|
|
New
|
-2.395531494
|
|
HI
|
0.008425792
|
|
S_INCOME
|
0.001206678
|
|
E_INCOME
|
-0.001374273
|
|
S_POP
|
3.40095E-06
|
|
E_POP
|
4.36313E-06
|
|
DISTANCE
|
0.074986255
|
|
PAX
|
-0.000870942
|
|
SW = Yes
|
-40.96959691
|
|
GATE = Free
|
-20.57923053
|
|
VACATION=Yes
|
-35.644441
|
|
SLOT=Free
|
-16.24476725
|
Which of the following statements are accurate and fully supported by the output?
Hint: There are two key things to keep in mind when we make statements about "the world" based on our regression models:
1) the regression coefficients always describe the average effect of the independent variables on the dependent variable
2) holding everything else constant
- Vacation routes tend to be cheaper than other routes.
- If the gates and slots are free, that will lower fares on average, everything else held constant.
- The variables S_Pop and E_Pop are not important.