In: Statistics and Probability
A suburban hotel derives its revenue from its hotel and restaurant operations. The owners are interested in the relationship between the number of rooms occupied on a nightly basis and the revenue per day in the restaurant. Below is a sample of 25 days (Monday through Thursday) from last year showing the restaurant income and number of rooms occupied.
Day | Revenue | Occupied | Day | Revenue | Occupied | ||||||||
1 | $ | 1,452 | 65 | 14 | $ | 1,425 | 31 | ||||||
2 | 1,361 | 20 | 15 | 1,445 | 51 | ||||||||
3 | 1,426 | 21 | 16 | 1,439 | 62 | ||||||||
4 | 1,470 | 50 | 17 | 1,348 | 45 | ||||||||
5 | 1,456 | 70 | 18 | 1,450 | 41 | ||||||||
6 | 1,430 | 23 | 19 | 1,431 | 62 | ||||||||
7 | 1,354 | 30 | 20 | 1,446 | 47 | ||||||||
8 | 1,442 | 21 | 21 | 1,485 | 43 | ||||||||
9 | 1,394 | 15 | 22 | 1,405 | 38 | ||||||||
10 | 1,459 | 36 | 23 | 1,461 | 36 | ||||||||
11 | 1,399 | 41 | 24 | 1,490 | 30 | ||||||||
12 | 1,458 | 35 | 25 | 1,426 | 65 | ||||||||
13 | 1,537 | 65 | |||||||||||
Choose the scatter diagram that best fits the data.
Scatter diagram 1 | Scatter diagram 2 | Scatter diagram 3 |
Scatter diagram 1
Scatter diagram 2
Scatter diagram 3
Determine the coefficient of correlation between the two variables. (Round your answer to 3 decimal places.)
Pearson correlation _____
c-1. State the decision rule for 0.01 significance level: H0: ρ ≤ 0; H1: ρ > 0. (Round your answer to 3 decimal places.)
Reject H0 if T> _____
c-2. Compute the value of the test statistic. (Round your answer to 2 decimal places.)
Value of the test statistic _________
c-3. Is it reasonable to conclude that there is a positive relationship between revenue and occupied rooms? Use the 0.01 significance level.
______ H0, it ______ reasonable to conclude that there is a positive relationship between revenue and occupied rooms.
What percent of the variation in revenue in the restaurant is accounted for by the number of rooms occupied? (Round your answer to 1 decimal place.)
_____ % of the variation in revenue is explained by variation occupied rooms.
a)
b)
correlation coefficient r= | Sxy/(√Sxx*Syy) = | 0.378 |
c-1_)
0.01 level,right tail test and n-2= 23 df, critical t= | 2.500 |
Decision rule: reject Ho if test statistic t>2.500 |
c-2)
test stat t= | r*(√(n-2)/(1-r2))= | 1.96 |
c-3)
fail to reject Ho , it is not reasonable to conclude that there is a positive relationship between revenue and occupied rooms.
d)
14.3 % of the variation in revenue is explained by variation occupied rooms.