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.

We have 3 columns ARR_MAY(AVERAGE ROOM RATE MAY) ,ARR_AUG(AVERAGE ROOM RATE AUG) AND STARS

STARS   ARR_MAY   ARR_AUG
5   95   160
5   94   173
5   81   174
5   131   225
5   90   195
5   71   136
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

PLEASE ANSWER QUESTION 1.1 AND 1.2 THANKS IN ADVANCE

Answer 1

Ans -->

1.1 ) We need to calculate percentage Average Room Rate Increase from May to August for each hotel in the sample

average increment (%) = (Price in Aug - Price in May)/Price in May

Hence the the average increment is 73.31 %

below is the table of calculations

STARS	ARR_MAY	ARR_AUG	PCT_ARR_INCREASE (%)
5	95	160	68.42
5	94	173	84.04
5	81	174	114.81
5	131	225	71.76
5	90	195	116.67
5	71	136	91.55
5	85	114	34.12
4	70	159	127.14
4	64	109	70.31
4	68	148	117.65
4	64	132	106.25
4	59	128	116.95
4	25	63	152.00
3	76	130	71.05
3	40	60	50.00
3	60	70	16.67
3	51	65	27.45
3	65	90	38.46
2	45	55	22.22
1	35	90	157.14
4	22	51	131.82
4	70	100	42.86
3	60	120	100.00
3	40	60	50.00
3	48	55	14.58
2	52	60	15.38
2	53	104	96.23
2	80	110	37.50
2	40	50	25.00
1	59	128	116.95
4	90	105	16.67
3	94	104	10.64
2	29	53	82.76
2	26	44	69.23
1	42	54	28.57
1	30	35	16.67
2	47	50	6.38
1	31	49	58.06
1	35	45	28.57
1	40	55	37.50
1	40	55	37.50
1	35	40	14.29
3	40	55	37.50
4	57	97	70.18
2	35	40	14.29
5	113	235	107.96
5	61	132	116.39
5	112	240	114.29
5	100	130	30.00
4	87	152	74.71
4	112	211	88.39
4	95	160	68.42
4	47	102	117.02
4	77	178	131.17
4	48	91	89.58
3	60	104	73.33
3	25	33	32.00
5	68	140	105.88
4	55	75	36.36
3	38	75	97.37
3	45	70	55.56
3	45	90	100.00
5	100	180	80.00
4	180	250	38.89
3	38	84	121.05
3	99	218	120.20
3	45	95	111.11
2	28	40	42.86
2	30	55	83.33
1	16	35	118.75
3	40	70	75.00
2	60	100	66.67
1	16	20	25.00
2	22	41	86.36
2	55	100	81.82
1	40	100	150.00
1	80	120	50.00
1	80	120	50.00
1	18	35	94.44
3	80	100	25.00
2	30	45	50.00
1	40	65	62.50
1	30	50	66.67
1	25	70	180.00
1	30	35	16.67
4	215	265	23.26
4	133	218	63.91
2	35	95	171.43
2	100	150	50.00
2	70	100	42.86
5	60	90	50.00
5	119	211	77.31
5	93	162	74.19
5	81	138	70.37
5	44	128	190.91
5	100	187	87.00
5	98	183	86.73
5	100	150	50.00
5	102	211	106.86
5	103	160	55.34
4	40	56	40.00
4	69	123	78.26
4	112	213	90.18
4	80	124	55.00
3	53	91	71.70
4	73	134	83.56
4	94	120	27.66
4	70	100	42.86
3	40	75	87.50
3	50	90	80.00
3	70	120	71.43
3	80	95	18.75
3	85	120	41.18
3	50	80	60.00
3	30	68	126.67
3	30	100	233.33
2	32	55	71.88
2	50	90	80.00
2	70	120	71.43
2	30	73	143.33
2	94	120	27.66
4	100	180	80.00
2	70	120	71.43
2	19	45	136.84
2	35	70	100.00
2	50	80	60.00
1	25	45	80.00
1	30	50	66.67
2	55	80	45.45
3	95	120	26.32
1	25	31	24.00
1	16	40	150.00
1	16	40	150.00
1	19	23	21.05
1	30	40	33.33
		Average	73.31

1.2) We need to state the null and alternative hypotheses.

Given we are using one way ANOVA

H₀ (Null Hypothesis) : Average room rate of increment of is same for all star hotel. (No Effect of stars)

Increment (%) of 5 star = Increment (%) of 4 star =Increment (%) of 3 star = Increment (%) of 2 star = Increment (%) of 1 star  

H₁ (Alternative hypothesis) : Average room rate increment of is not same for all stars. (there is Effect of stars)

Increment (%) of 5 star ≠ 4 star ≠3 star≠ 2 star≠1 star