Question

Is the percentage average room rate increase from May to August affected by the number of stars of a hotel? In order to answer this question you are asked to use one way analysis of variance. 1.1 Compute the percentage Average Room Rate Increase from May to August for each hotel in the sample, rounding up to the second decimal. Call this variable PCT_ARR_INCREASE. 1.2 State the null and alternative hypotheses. 1.3 Test the null hypothesis at the 5% significance level. 1.4 What can you conclude from the above findings? 1.5 A friend of yours insists that the data clearly show that 5-star hotels have larger percentage average room rate increases than lesser star hotels so he/she is confident that the number of stars affects the percentage average room increase. What would be your answer to him/her be?

STARS   ARR_MAY   ARR_AUG
5 95 160
5 94 173
5 81 174
5 131 225
5 90 195
5 71 36
5 85 114
4 70 159
4 64 109
4 68 148
4 64 132
4 59 128
4 25 63
3 76 130
3 40 60
3 60 70
3 51 65
3 65 90
2 45 55
1 35 90
4 22 51
4 70 100
3 60 120
3 40 60
3 48 55
2 52 60
2 53 104
2 80 110
2 40 50
1 59 128
4 90 105
3 94 104
2 29 53
2 26 44
1 42 54
1 30 35
2 47 50
1 31 49
1 35 45
1 40 55
1   40 55
1   35 40
3   40 55
4   57 97
2   35 40
5   113 235
5   61 132
5   112 240
5   100 130
4   87 152
4   112 211
4   95 160
4   47 102
4   77 178
4   48 91
3   60 104
3   25 33
5   68 140
4   55 75
3   38 75
3   45 70
3   45 90
5   100 180
4   180 250
3   38 84
3   99 218
3   45 95
2   28 40
2   30 55
1   16 35
3   40 70
2   60 100
1   16 20
2   22 41
2   55 100
1   40 100
1   80 120
1   80 120
1   18 35
3   80 100
2   30 45
1   40 65
1   30 50
1   25 70
1   30 35
4   215 265
4   133 218
2   35 95
2   100 150
2   70 100
5   60 90
5   119 211
5   93 162
5   81 138
5   44 128
5   100 187
5   98 183
5   100 150
5   102 211
5   103 160
4   40 56
4   69 123
4   112 213
4   80 124
3   53 91
4   73 134
4   94 120
4   70 100
3   40 75
3   50 90
3   70 120
3   80 95
3   85 120
3   50 80
3   30 68
3   30 100
2   32 55
2   50 90
2   70 120
2   30 73
2   94 120
4   100 180
2   70 120
2   19 45
2   35 70
2   50 80
1   25 45
1   30 50
2   55 80
3   95 120
1   25 31
1   16 40
1   16 40
1   19 23
1   30 40 THREE COLUMNS (STARS -ARR_MAY-ARR_AUG)

PLEASE ANSWER QUESTION 1.3,1.4,1.5

THANKS IN ADVANCE

Answer 1

1.3

Firs arrange the percentage average room rate increase for each number of a star in a separate column

The test is performed in excel by using the following steps,

Step 1: Write the data values in excel. The screenshot is shown below

(the first column represents the number of a star)

Step 2: DATA > Data Analysis > ANOVA: Single Factor > OK.  The screenshot is shown below,

Step 3: Select Input Range: All the data values column. The screenshot is shown below,

The result is obtained.  The screenshot is shown below,

P-value = 0.7300 > 0.05 at a 5% significance level hence the null hypothesis is not rejected.

1.4

From the ANOVA table,

P-value = 0.7300

Since the P-value = 0.7300 > 0.05 at a 5% significance level which means there is no difference in mean percentage average room rate increase from May to August affected by the number of stars of a hotel

1.5

Since there is no difference in the mean percentage average room rate increase from May to August among all the hotel by stars at a 5% significance level we can not conclude that the number of stars affects the percentage average room increase