Q1) Suburban hotel derives its gross income from its hotel and restaurant operations. Owners are interested in relationship between number of rooms occupied on nightly basis and revenue per day in restaurant. Below is sample of 25 days (Monday through Thursday) from last year showing he restaurant income and number of rooms occupied.
|
Day
|
Income
|
Occupied
|
Day
|
Income
|
Occupied
|
|
1
|
$1,452
|
23
|
14
|
1425
|
27
|
|
2
|
1361
|
47
|
15
|
1445
|
34
|
|
3
|
1426
|
21
|
16
|
1439
|
15
|
|
4
|
1470
|
39
|
17
|
1348
|
19
|
|
5
|
1456
|
37
|
18
|
1450
|
38
|
|
6
|
1430
|
29
|
19
|
1431
|
44
|
|
7
|
1354
|
23
|
20
|
1446
|
47
|
|
8
|
1442
|
44
|
21
|
1485
|
43
|
|
9
|
1394
|
45
|
22
|
1405
|
38
|
|
10
|
1459
|
16
|
23
|
1461
|
51
|
|
11
|
1399
|
30
|
24
|
1490
|
61
|
|
12
|
1458
|
42
|
25
|
1426
|
39
|
|
13
|
1537
|
54
|
|
|
|
Use statistical software package to reply the following questions.
a) Does breakfast revenue appear to increase as number of occupied rooms increases? Draw scatter diagram to support your conclusion.
b) Find out coefficient of correlation between variables. Interpret the value.
c) Is it reasonable to conclude that there is a positive relationship between the revenue and occupied rooms? Use the .10 significance level.
d) What percent of variation in revenue in restaurant is accounted for by number of rooms occupied?