Determine regression equation for forecasting breakfast

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1. The managers of the Ada Hotel forecast the breakfast covers based on number of guest rooms. Following table presents the number of rooms sold and breakfast covers for the past year, 2017.

Room Guests Breakfast Covers

January 1,200 1,400

February 1,020 1,220

March 1,250 1,420

April 1,100 1,320

May 1,380 1,520

June 1,400 1,580

July 1,520 1,650

August 1,550 1,690

September 1,450 1,400

October 1,210 1,380

November 1,080 1,240

December 1,050 1,220

Required:

1. Determine the coefficient of correlation and coefficient of determination for the Ada Hotel based on the data presented above. Comment on the strength of the relationship between room guests and breakfast covers.

2. Determine a regression equation for forecasting breakfast covers based on the number of room guests.

3. If 1,620 room guests are forecasted for next January, how many breakfast customers are forecasted to be served?

Note: You need to use MS Excel’s regression function to answer these questions. Please attach your regression output (Summary Output) to your submission.

Reference no: EM132149692

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