Question
A suburban hotel derives its gross income from its hotel and restaurant operations. The owners are interested in the relationship between the number of rooms
A suburban hotel derives its gross income from its hotel and restaurant operations. The owners are interested in the relationship between the number of rooms occupied on a nightly basis and the revenue per day in the restaurant. Below is a sample of 25 days (Monday through Thursday) from last year showing the restaurant income and number of room occupied.
Use a statistical software package to answer the following questions.
- Does the breakfast revenue seem to increase as the number of occupied rooms increases? Draw a scatter diagram to support your conclusion.
- Determine the correlation coefficient between the two variables. Interpret the value.
- Is it reasonable to conclude that there is a positive relationship between revenue and occupied rooms? Use the .10 significance level.
- Whatpercentofthevariationintherevenueintherestaurantisaccountedforbythenumberofroomsoccupied?
Day | Income | Occupied | Day | Income | Occupied |
1 | $1,452 | 23 | 14 | $1,425 | 27 |
2 | 1,361 | 47 | 15 | 1,445 | 34 |
3 | 1,426 | 21 | 16 | 1,439 | 15 |
4 | 1,470 | 39 | 17 | 1,348 | 19 |
5 | 1,456 | 37 | 18 | 1,450 | 38 |
6 | 1,430 | 29 | 19 | 1,431 | 44 |
7 | 1,354 | 23 | 20 | 1,446 | 47 |
8 | 1,442 | 44 | 21 | 1,485 | 43 |
9 | 1,394 | 45 | 22 | 1,405 | 38 |
10 | 1,459 | 16 | 23 | 1,461 | 51 |
11 | 1,399 | 30 | 24 | 1,490 | 61 |
12 | 1,458 | 42 | 25 | 1,426 | 39 |
13 | 1,537 | 54 |
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