Reference no: EM13720227

Marriott Corporation is considering building a new hotel conference center on a beachfront area of Venezuela. Before choosing the final location for the hotel/conference center complex, the management team acquired occupancy data and measured the proximity to the beach for 14 existing hotels in the area. The management team recognizes that the relationship between distance from the beach and occupancy rate must be known in order to predict the success of the new complex. The data are shown below.

Hotel   Distance         Occupancy rate

1                                       0.1   92

2                                       0.1   95

3                                       0.2   96

4                                       0.3   90

5                                       0.4   89

6                                       0.4   86

7                                       0.5   90

8                                       0.6   83

9                                       0.7   85

10                                   0.7   80

11                                   0.8   78

12                                   0.8   76

13                                   0.9   72

14                                   0.9   75

 

Summary Output

 

Regression Statistics

Multiple R                   0.943618

R Square                    0.890416

Adjusted R Square    0.881284

Standard Error          2.641994

Observations 14

	df	SS	MS	F	Significance F
Regression	1	680.5956	680.5956	97.50469	4.1E-07
Residual	12	83.76158	6.980132
Total	13	764.3571
	Coefficients	Standard Error	t Stat	P-Value	Lower 95%	Upper 95%
Intercept	98.25204	1.535711	63.97819	1.41E-16	94.90602	101.5981
X Variable1	-25.4768	2.580078	-9.87445	4.1E-07	-31.0983	-19.8553

1. Find (specify) the best model to predict the occupancy rate of the hotel complex.

2. Identify and define the slope and the y-intercept.

3. Predict the occupancy based on location 0.65 miles from the ocean.

4. How accurate is the model? How well does it explain occupancy? Discuss.

5. Is the model significant at the 0.05 level of significance? The critical value is 3.95.