A suburban hotel derives its gross income from its hotel and restaurant operations ...

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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 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 rooms occupied.   Day    Income    Occupied   1     $1,452          23    2      1,361          47    3      1,426          21    4      1,470          39    5      1,456          37    6      1,430          29    7      1,354       23    8      1,442       44    9      1,394          45    10    1,459          16    11     1,399          30    12     1,458          42    13     1,537       54    14     $1,425       27   15    1,445          34    16     1,439       15    17      1,348       19    18     1,450       38    19      1,431      44    20      1,446      47    21      1,485      43    22      1,405       38    23      1,461       51    24      1,490       61    25      1,426      39     

     a)Does the   breakfast revenue seem to increase as the number of occupied rooms increases?   Draw a scatter diagram to support your conclusion.         b)Determine   the coefficient of correlation between the two variables. Interpret the   value.         c)Is it   reasonable to conclude that there is a positive relationship between revenue   and occupied rooms? Use the .10 significance level.         d)What   percent of the variation in revenue in the restaurant is accounted for by the   number of rooms occupied?    

    • 8 years ago
    The breakfast revenue increases as the number of rooms occupied increases. This is seen from ...
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