If there is a dependency of the number of stays exist, a local property developer intends to develop a vacant plot of land for building with sufficient rooms for short term rental. The property developer has taken into consideration the estimated cost of development, the probability of economic conditions and the estimated return over a period of 15 years as shown in Table 3. Table 3: Investment and Returns Trade off.

2a) Can the management company conclude at 5% significant level that preference index is dependent on the type of apartment (with different rooms)?

2b) From the scenario above, what will be your recommendation to the property developer? [30 Marks]

Table 3: Investment and Returns Trade off. Table 2: Frequency of Respondents