THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION

Essay

THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION:
The director of a local tourist board is interested in determining the factors that influence the hotel occupancy rate in his city each month.Hotel occupancy can be measured as the percentage of available hotel rooms that are occupied by paying customers.He develops the model: lnY = β₀ + β₁lnX₁ + β₂lnX₂ + β₃lnX₃ + β₄X₄ + ε,where Y is the hotel occupancy rate (as a percentage),X₁ is the total number of passengers arriving at the airport (measured in thousands),X₂ is an average of local hotel room rates,X₃ is the consumer confidence index,and X₄ is a dummy variable = 1 during the months of June,July,and August.He looks at the data from the past 36 months and obtains ln
= 4.2 + 1.23lnx₁ - 2.2lnx₂ + 0.34ln x₃ + 2.3x₄ and R² = 0.63.
-Interpret the estimate b₃.