34. Convention revenues. At one time, Nevada was the only U.S. state that allowed gambling. Although gambling continues to be one of the major industries in Nevada, the proliferation of legalized gambling in other areas of the country has required state and local governments to look at other growth possibilities. The convention and visitor’s authorities in many Nevada cities actively recruit national conventions that bring thousands of visitors to the state.

Various demographic and economic data are collected from surveys given to convention attendees. One statistic of interest is the amount visitors spend on slot machine gambling. Nevada often reports the slot machine expenditure as amount spent per hotel guest room. A recent survey of 500 visitors asked how much they spent on gambling.

The average expenditure per room was $180.

Casinos will use the information reported in the survey to estimate slot machine expenditure per hotel room. Do you think the estimates produced by the survey will accurately represent expenditures? Explain using the statistics reported and graph shown.

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Number of Rooms 80 70 60 50 40 30 10 2200 90 120 150 180 210 240 Expenditures on Slot Machines (per hotel room) 270