Question

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		30		14		$	1,425		31
2			1,361		29		15			1,445		34
3			1,426		31		16			1,439		34
4			1,470		32		17			1,348		31
5			1,456		32		18			1,450		30
6			1,430		32		19			1,431		30
7			1,354		29		20			1,446		31
8			1,442		30		21			1,485		34
9			1,394		32		22			1,405		30
10			1,459		32		23			1,461		32
11			1,399		31		24			1,490		30
12			1,458		31		25			1,426		30
13			1,537		34

1. 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

2. Determine the coefficient of correlation between the two variables. (Round your answer to 3 decimal places.)

Pearson correlation _______

1. 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 > ________

1. c-2. Compute the value of the test statistic. (Round your answer to 2 decimal places.)

Value of the test statistic ______

4. 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 in occupied rooms.

Answer 1

A)

constructed a regression analysis in excel for the given data.