What is the difference between a management contract, a brand, and a hotel franchise agreement? Are all three necessary to run a successful hotel?

The Transactional Records Access Clearinghouse at Syracuse University reported data showing the odds of an Internal Revenue Service audit. The following table shows the average adjusted gross income reported (in dollars) and the percent of the returns that were audited for 20 selected IRS districts.

(a)

Develop the estimated regression equation that could be used to predict the percent audited given the average adjusted gross income reported (in dollars). (Round your value for the y-intercept to three decimal places and your value for the slope to six decimal places.)

ŷ =

(b)

At the 0.05 level of significance, determine whether the adjusted gross income (in dollars) and the percent audited are related. (Use the F test.)

State the null and alternative hypotheses.

H₀: β₁ ≠ 0
H_a: β₁ = 0

H₀: β₁ = 0
H_a: β₁ ≠ 0   

H₀: β₀ ≠ 0
H_a: β₀ = 0

H₀: β₁ ≥ 0
H_a: β₁ < 0

H₀: β₀ = 0
H_a: β₀ ≠ 0

Find the value of the test statistic. (Round your answer to two decimal places.)

Find the p-value. (Round your answer to three decimal places.)

p-value =

State your conclusion.

Do not reject H₀. We cannot conclude that the relationship between the adjusted gross income (in dollars) and the percent audited is significant.

Do not reject H₀. We conclude that the relationship between the adjusted gross income (in dollars) and the percent audited is significant.

Reject H₀. We conclude that the relationship between the adjusted gross income (in dollars) and the percent audited is significant.

Reject H₀. We cannot conclude that the relationship between the adjusted gross income (in dollars) and the percent audited is significant.

(c)

Did the estimated regression equation provide a good fit? Explain. (Round your answer to three decimal places.)

Since

r² =

is  ---Select--- less than 0.55 at least 0.55 , the estimated regression equation  ---Select--- provided did not provide a good fit.

(d)

Use the estimated regression equation developed in part (a) to calculate a 95% confidence interval for the expected percent audited for districts with an average adjusted gross income of $37,000. (Round your answers to two decimal places.)

% to  %

The Transactional Records Access Clearinghouse at Syracuse University reported data showing the odds of an Internal Revenue Service audit. The following table shows the average adjusted gross income reported (in dollars) and the percent of the returns that were audited for 20 selected IRS districts.

(a)

Develop the estimated regression equation that could be used to predict the percent audited given the average adjusted gross income reported (in dollars). (Round your value for the y-intercept to three decimal places and your value for the slope to six decimal places.)

ŷ =

(b)

At the 0.05 level of significance, determine whether the adjusted gross income (in dollars) and the percent audited are related. (Use the F test.)

State the null and alternative hypotheses.

H₀: β₁ ≠ 0
H_a: β₁ = 0

H₀: β₁ ≥ 0
H_a: β₁ < 0    

H₀: β₀ = 0
H_a: β₀ ≠ 0

H₀: β₀ ≠ 0
H_a: β₀ = 0

H₀: β₁ = 0
H_a: β₁ ≠ 0

Find the value of the test statistic. (Round your answer to two decimal places.)

_______

Find the p-value. (Round your answer to three decimal places.)

p-value = ______

State your conclusion.

Do not reject H₀. We cannot conclude that the relationship between the adjusted gross income (in dollars) and the percent audited is significant.

Do not reject H₀. We conclude that the relationship between the adjusted gross income (in dollars) and the percent audited is significant.    

Reject H₀. We cannot conclude that the relationship between the adjusted gross income (in dollars) and the percent audited is significant.

Reject H₀. We conclude that the relationship between the adjusted gross income (in dollars) and the percent audited is significant.

(c)

Did the estimated regression equation provide a good fit? Explain. (Round your answer to three decimal places.)

Since

r² = ________

is (---Select--- less than 0.55 at least 0.55) , the estimated regression equation (---Select--- provided ,did not provide a good fit).

(d)

Use the estimated regression equation developed in part (a) to calculate a 95% confidence interval for the expected percent audited for districts with an average adjusted gross income of $35,000. (Round your answers to two decimal places.)

_____% to _____%

5.Contrast the level of security in a hotel that uses a hard-key system with that in a hotel that uses an electronic key or smart card system.

Exercise 1-4. Information Age [LO 4]

The Wellington Hotel is a posh hotel in Manhattan that uses a customer relationship management (CRM) system to track customer preferences and purchases.

Provide two examples of specific information the CRM system might capture and how the hotel could use the information to enhance revenue and/or the customer experience.

A survey of 1935 people who took trips revealed that 181 of them included a visit to a theme park. Based on those survey results, a management consultant claims that less than 10 % of trips include a theme park visit. Test this claim using the ?=0.01 significance level.

(a) The test statistic is

(b) The P-value is

(c) The conclusion is  

A. There is not sufficient evidence to support the claim that less than 10 % of trips include a theme park visit.
B. There is sufficient evidence to support the claim that less than 10 % of trips include a theme park visit.

New York City is the most expensive city in the United States for lodging. The mean hotel room rate is $205 per night (USA Today, April 30, 2012). Assume that room rates are normally distributed with a standard deviation of $55. Use Table 1 in Appendix B.

a. What is the probability that a hotel room costs $227 or more per night (to 4 decimals)?

b. What is the probability that a hotel room costs less than $143 per night (to 4 decimals)?

c. What is the probability that a hotel room costs between $201 and $299 per night (to 4 decimals)?

d. What is the cost of the 20% most expensive hotel rooms in New York City? Round up to the next dollar.
$ or - Select your answer -more less

New York City is the most expensive city in the United States for lodging. The mean hotel room rate is $204 per night. Assume that room rates are normally distributed with a standard deviation of $55.

(a)

What is the probability that a hotel room costs $265 or more per night? (Round your answer to four decimal places.)

(b)

What is the probability that a hotel room costs less than $120 per night? (Round your answer to four decimal places.)

(c)

What is the probability that a hotel room costs between $210 and $300 per night? (Round your answer to four decimal places.)

(d)

What is the cost in dollars of the 10% most expensive hotel rooms in New York City? (Round your answer to the nearest cent.)

New York City is the most expensive city in the United States for lodging. The mean hotel room rate is $204 per night.† Assume that room rates are normally distributed with a standard deviation of $55.

(a)

What is the probability that a hotel room costs $255 or more per night? (Round your answer to four decimal places.)

(b)

What is the probability that a hotel room costs less than $130 per night? (Round your answer to four decimal places.)

(c)

What is the probability that a hotel room costs between $200 and $280 per night? (Round your answer to four decimal places.)

(d)

What is the cost in dollars of the 20% most expensive hotel rooms in New York City? (Round your answer to the nearest cent.)

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