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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
2S
14
$1,425
27
2
1.361
47
15
1.445
34
3
1.426
21
16
1.439
4
1.47
39
17
1,348
19
5
1.456
37
18
1.45
36
6
1.43
29
1.431
44
7
1,354
23
20
1.446
8
1.442
1.485
43
9
1.394
45
22
1.405
38
10
1.459
1.461
51
11
1,399
30
24
1,490
61
12
1,458
42
25
13
1.537
54
Use a statistical software package to answer the following questions.
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?
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