Espiriki Hotel International is a 200-room hotel situated near Changi Airport. It has a lounge at the lobby but was not doing very well. Mr John Tan, the Lounge Manager, wanted to analyse the monthly beverages sales in the lounge. He collected the following data for the most recent

60 months:

BEVTOTAL: Total monthly beverage sales (S$'000)

FOODTOT: Total amount spent on food (S$'000)

ROOMS: Total room occupancy (room-nights)

PERFORMANCE: 1 means there were some performances during that month

0 means there was no performance during that month

The dataset can be found at the end of this question. The beverage sales is the dependent variable and the other variables are independent variables.

(a) Describe the relationship between beverage sales and the three (3) independent variables by writing down the linear equation. Interpret the coefficients to show how each of the independent variables impact beverage sales. You are required to present the relevant Excel output table. (5 marks)

(b) Mr Tan wants to estimate the monthly beverage sales for a particular month in which the total food sales is $2.5 million, total room occupancy is 5,000 and there are three performances in the lounge during that month. What is your estimate of the beverage sales for that month? (4 marks)

(c) Interpret the coefficient of multiple determination and the adjusted coefficient of multiple determination. Explain which is a better measure in this case. You are required to present the relevant Excel output table.(6 marks)

(d) Execute hypothesis tests to advise Mr Tan which variable(s) is/are significant at the 5% significance level. Write down your steps carefully. (10 marks)

DATA:

A B C D E F G H K MONTH BEVTOTAL FOODTOT ROOMS PERFORMANCE 17189 2107 4154 15686 2141 4457 19351 3123 5077 VARIABLES 21201 2586 4456 MONTH = Most recent 60 months - 5 6 O V ON UI A W N H COCO VO) UI A W N - 14436 2288 4733 BEVTOTAL = Total monthly beverage sales (S$'000) -oooooo - O- 14328 2454 5383 FOODTOT = Total amount spent on food (S$'000) 11050 2171 5010 ROOMS = Total room occupancy (room-nights) 10599 2747 5030 PERFORMANCE = 1 means there were some performances during that month 12434 1404 5372 0 means there was no performance during that month 10 17859 1642 4889