The Maple Creek Amphitheater is an outdoor pavilion that presents musical performers throughout a six-month season, from late spring to early fall. Maple Creek presents a diverse venue of artists in a set of approximately 40 events each season. In order to better project its costs and expected attendance, Maple Creek uses regression analysis to project expected ticket sales for upcoming events for each performer. The regression results shown below are derived from the three most recent seasons. The dependent variable for Maple Creek is the number of paying ticket-holders for each event, and the five independent variables are:
- Whether this particular performer appeared at Maple Creek previously (a dummy variable, 0 if no and 1 if yes).
- The spending on advertising targeted to the performer’s appearance.
- The performer’s local sales of CDs in the most recent year prior to his or her appearance.
- The number of television appearances for the performer in the most recent year.
- The number of other public performances by the performer in the recent year.
The regression results are: