Concur Technologies, Inc., is a large expense-management company located in Redmond, Washington. The Wall Street Journalasked Concur to examine the data from 8.3 million expense reports to provide insights regarding business travel expenses. Their analysis of the data showed that New York was the most expensive city, with an average daily hotel room rate of $198 and an average amount spent on entertainment, including group meals and tickets for shows, sports, and other events, of $172. In comparison, the U. S. averages for these two categories were $89 for the room rate and $99 for entertainment. The data below shows the average daily hotel room rate and the amount spent on entertainment for a random sample of 9 of the 25 most visited U. S. cities (The Wall Street Journal, August 18, 2011).
Hotel Room Rate ($)
152
97
87
112
93
100
133
90
81
Entertainment ($)
161
104
103
141
101
120
165
141
96
a. Develop the least squares estimated regression equation.
b. The average room rate in Chicago is $128, considerably higher than the U. S. average. Predict the entertainment expense per day for Chicago (to whole number).