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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.

  1. Does the breakfast revenue seem to increase as the number of occupied rooms increases? Draw a scatter diagram to support your conclusion.
  2. Determine the correlation coefficient between the two variables. Interpret the value.
  3. Is it reasonable to conclude that there is a positive relationship between revenue and occupied rooms? Use the .10 significance level.
  4. 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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