Finding coefficient of correlation between variables

Reference no: EM1318649

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?

Reference no: EM1318649

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