1.II.13I

Statistical Modelling
Part II, 2005

The Independent, June 1999 , under the headline 'Tourists get hidden costs warnings' gave the following table of prices in pounds, called 'How the resorts compared'.

 Algarve 8.000.503.503.004.00100.00 CostaDelSol 6.951.304.1012.304.10130.85 Majorca 10.251.455.356.153.30122.20 Tenerife 12.301.254.903.702.90130.85 Florida 15.601.905.055.002.50114.00 Tunisia 10.901.405.451.902.75218.10 Cyprus 11.601.205.953.003.60149.45 Turkey 6.501.056.504.902.85263.00 Corfu 5.201.053.754.202.50137.60 Sorrento 7.701.406.308.754.75215.40 Malta 11.200.704.558.004.8087.85 Rhodes 6.301.055.203.152.70261.30 Sicily 13.251.754.207.003.85174.40 Madeira 10.250.705.106.856.85153.70\begin{array}{lrrrrrr}\text { Algarve } & 8.00 & 0.50 & 3.50 & 3.00 & 4.00 & 100.00 \\ \text { CostaDelSol } & 6.95 & 1.30 & 4.10 & 12.30 & 4.10 & 130.85 \\ \text { Majorca } & 10.25 & 1.45 & 5.35 & 6.15 & 3.30 & 122.20 \\ \text { Tenerife } & 12.30 & 1.25 & 4.90 & 3.70 & 2.90 & 130.85 \\ \text { Florida } & 15.60 & 1.90 & 5.05 & 5.00 & 2.50 & 114.00 \\ \text { Tunisia } & 10.90 & 1.40 & 5.45 & 1.90 & 2.75 & 218.10 \\ \text { Cyprus } & 11.60 & 1.20 & 5.95 & 3.00 & 3.60 & 149.45 \\ \text { Turkey } & 6.50 & 1.05 & 6.50 & 4.90 & 2.85 & 263.00 \\ \text { Corfu } & 5.20 & 1.05 & 3.75 & 4.20 & 2.50 & 137.60 \\ \text { Sorrento } & 7.70 & 1.40 & 6.30 & 8.75 & 4.75 & 215.40 \\ \text { Malta } & 11.20 & 0.70 & 4.55 & 8.00 & 4.80 & 87.85 \\ \text { Rhodes } & 6.30 & 1.05 & 5.20 & 3.15 & 2.70 & 261.30 \\ \text { Sicily } & 13.25 & 1.75 & 4.20 & 7.00 & 3.85 & 174.40 \\ \text { Madeira } & 10.25 & 0.70 & 5.10 & 6.85 & 6.85 & 153.70\end{array}

Here the column headings are, respectively: Three-course meal, Bottle of Beer, Suntan Lotion, Taxi (5km), Film (24 exp), Car Hire (per week). Interpret the RR commands, and explain how to interpret the corresponding (slightly abbreviated) RR output given below. Your solution should include a careful statement of the underlying statistical model, but you may quote without proof any distributional results required.

Residual standard error: 0.34250.3425 on 65 degrees of freedom

Multiple R-Squared: 0.9620.962