Question

The file Hotel Prices contains the prices in British pounds (about US$ 1.52 as of July 2013) of a room at two-star, three-star, and four-star hotels in cities around the world in 2013.

City	Two-Star	Three-Star	Four-Star
Amsterdam	74	88	116
Bangkok	23	35	72
Barcelona	65	90	106
Beijing	35	50	79
Berlin	63	58	76
Boston	102	132	179
Brussels	66	85	98
Cancun	42	85	205
Chicago	66	115	142
Dubai	84	67	111
Dublin	48	66	87
Edinburgh	72	82	104
Frankfurt	70	82	107
Hong Kong	42	87	131
Istanbul	47	77	91
Las Vegas	41	47	85
Lisbon	36	56	74
London	74	90	135
Los Angeles	80	118	200
Madrid	47	66	79
Miami	84	124	202
Montreal	76	113	148
Mumbai	41	72	90
Munich	79	97	115
New York	116	161	206
Nice	69	87	133
Orlando	45	78	120
Paris	76	104	150
Rome	75	82	108
San Francisco	92	137	176
Seattle	95	120	166
Shanghai	22	49	79
Singapore	58	104	150
Tokyo	50	82	150
Toronto	72	92	149
Vancouver	74	105	146
Venice	87	99	131
Washington	85	128	158

a. Compute the mean, median, first quartile, and third quartile.

b. Compute the range, interquartile range, variance, standard de-viation, and coefficient of variation.

c. Interpret the measures of central tendency and variation within the context of this problem.

d. Construct a boxplot. Are the data skewed? If so, how?

e. Compute the covariance between the average price at two-star and three-star hotels, between two-star and four-star hotels, and between three-star and four-star hotels.

f. Compute the coefficient of correlation between the average price at two-star and three-star hotels, between two-star and four-star hotels, and between three-star and four-star hotels.

g. Which do you think is more valuable in expressing the relation-ship between the average price of a room at two-star, three-star, and four-star hotels—the covariance or the coefficient of cor-relation? Explain.

h. Based on (f), what conclusions can you reach about the relationship between the average price of a room at two-star, three-star, and four-star hotels?

Answer 1

a-b)

c) Mean of Two star is smaller than the median. Showing negatively skewed.

Mean of Three star is greater than the median. It is positively skewed.

similarly for Three star.

Standard deviation of Three star is greater than one star and Two star showing large variation in data.

But coefficient of variation is greater for one star as compared to Two stars and Three stars.

d)

As we can see from the box plot data is POSITIVELY SKEWED.

MEDIAN LINE CLOSE TO FIRST QUARTILE.

NOTE: AS PER THE RULES AS I HAVE DONE THE FIRST FOUR QUESTIONS. PLEASE REPOST THE REST ALONG WITH THE DATA.