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.

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 32 14 $ 1,425 29 2 1,361 30 15 1,445 31 3 1,426 33 16 1,439 33 4 1,470 33 17 1,348 30 5 1,456 33 18 1,450 34 6 1,430 29 19 1,431 30 7 1,354 29 20 1,446 30 8 1,442 30 21 1,485 30 9 1,394 32 22 1,405 32 10 1,459 30 23 1,461 32 11 1,399 33 24 1,490 32 12 1,458 31 25 1,426 33 13 1,537 34

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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.)

c-1. State the decision rule for 0.05 significance level: H0: ρ ≤ 0; H1: ρ > 0. (Round your answer to 3 decimal places.)

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

c-3. Is it reasonable to conclude that there is a positive relationship between revenue and occupied rooms? Use the 0.05 significance level. 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.)

  
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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.

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.

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

1. c-1. State the decision rule for 0.10 significance level: H₀: ρ ≤ 0; H₁: ρ > 0. (Round your answer to 3 decimal places.)

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

3. c-3. Is it reasonable to conclude that there is a positive relationship between revenue and occupied rooms? Use the 0.10 significance level.

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 Income Occupied Day Income Occupied 1 $ 1,452 20 14 $ 1,425 31 2 1,361 20 15 1,445 51 3 1,426 21 16 1,439 62 4 1,470 80 17 1,348 45 5 1,456 70 18 1,450 41 6 1,430 29 19 1,431 62 7 1,354 70 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 51 PictureClick here for the Excel Data File Use a statistical software package to answer the following questions.

b. Determine the coefficient of correlation between the two variables. (Round your answer to 3 decimal places.) Pearson correlation 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 > Compute the value of the test statistic. (Round your answer to 2 decimal places.) Value of the test statistic

c. Is it reasonable to conclude that there is a positive relationship between revenue and occupied rooms? Use the 0.01 significance level. H0, There is a between revenue and occupied rooms.

d. 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.

The Bill of Rights contains the first 10 amendments to the U.S. Constitution, which can be seen below:

Bill of Rights

The first ten amendments to the U.S. Constitution make up what is known as the Bill of Rights. These amendments form part of the essence of what makes United States citizenship the privilege that it is. Many people are familiar with freedom of speech, freedom of religion, and freedom of the press, but these important Constitutional amendments offer more than those rights. You can review the first 10 amendments and the rights they guarantee below.

Amendment 1 Annotations

Congress shall make no law respecting an establishment of religion, or prohibiting the free exercise thereof; or abridging the freedom of speech, or of the press; or the right of the people peaceably to assemble, and to petition the Government for a redress of grievances.

Amendment 2 Annotations

A well regulated Militia, being necessary to the security of a free State, the right of the people to keep and bear Arms, shall not be infringed.

Amendment 3 Annotations

No Soldier shall, in time of peace be quartered in any house, without the consent of the Owner, nor in time of war, but in a manner to be prescribed by law.

Amendment 4 Annotations

The right of the people to be secure in their persons, houses, papers, and effects, against unreasonable searches and seizures, shall not be violated, and no Warrants shall issue, but upon probable cause, supported by Oath or affirmation, and particularly describing the place to be searched, and the persons or things to be seized.

Amendment 5 Annotations

No person shall be held to answer for a capital, or otherwise infamous crime, unless on a presentment or indictment of a Grand Jury, except in cases arising in the land or naval forces, or in the Militia, when in actual service in time of War or public danger; nor shall any person be subject for the same offence to be twice put in jeopardy of life or limb; nor shall be compelled in any criminal case to be a witness against himself, nor be deprived of life, liberty, or property, without due process of law; nor shall private property be taken for public use, without just compensation.

Amendment 6 Annotations

In all criminal prosecutions, the accused shall enjoy the right to a speedy and public trial, by an impartial jury of the State and district wherein the crime shall have been committed, which district shall have been previously ascertained by law, and to be informed of the nature and cause of the accusation; to be confronted with the witnesses against him; to have compulsory process for obtaining witnesses in his favor, and to have the Assistance of Counsel for his defence.

Amendment 7 Annotations

In Suits at common law, where the value in controversy shall exceed twenty dollars, the right of trial by jury shall be preserved, and no fact tried by a jury, shall be otherwise re-examined in any Court of the United States, than according to the rules of the common law.

Amendment 8 Annotations

Excessive bail shall not be required, nor excessive fines imposed, nor cruel and unusual punishments inflicted.

Amendment 9 Annotations

The enumeration in the Constitution, of certain rights, shall not be construed to deny or disparage others retained by the people.

Amendment 10 Annotations

The powers not delegated to the United States by the Constitution, nor prohibited by it to the States, are reserved to the States respectively, or to the people.

Review the 10 amendments. Which ones are relevant to businesses?

Colorectal cancer (CRC) is the second most common cancer diagnosed in industrialized nations (Benson et al. 2008). Worldwide, colon cancer is the fourth leading cause of cancer deaths, and it is the second leading cause of cancer deaths in the United States (Janout & Kollarova 2001). Risk of developing colon cancer increases with age; more than 90 percent of cases occur after age 50 (American Cancer Society 2005). A family history of colon cancer is another major risk factor. Individuals with one first-degree relative diagnosed after age 50 have a relative risk of 1.6. That increases to 2.6 if the relative was diagnosed before age 50. The presence of two first-degree relatives diagnosed with colon cancer increases risk further. Relative risk is 3.5 if both relatives were diagnosed after age 50, 5.6 if either or both were diagnosed before age 50 (Wilschut et al. 2011). You are a primary care provider and one of your patients, Mr. Jones, is a 50-year-old male with no history of colon cancer. He has heard about the recommendations for colon cancer screening and has some questions for you. How commonly is colon cancer diagnosed in the United States? Is Mr. Jones at increased risk? The latest statistics from the Centers for Disease Control and Prevention (CDC 2013) report that 136,717 cases of colon cancer are diagnosed annually. Mr. Jones is curious as to whether his gender places him at increased risk. Of those 136,717 cases of CRC, 70,223 were male and 66,494 were female. Of the US population, 148,640,424 are male and 152,711,352 are female. Mr. Jones is also curious about whether his older age places him at increased risk for CRC. Exhibit C.1 reports the cases and population size among males for various age categories (CDC 2013).

Questions

1. Assume a total US population of 301,351,776; calculate the overall incidence rate per 100,000 of colon cancer in the United States.

2. By calculating the ratio of incidence rates we can derive the relative risk of getting CRC (males compared to females), or the number of times more likely males are to get CRC than females. Calculate the incidence rate for males and females and the relative risk (males versus females)

Mini Case: Nike and Sweatshop Labor

Nike, a company headquartered in Beaverton, Oregon, is a major force in the sports footwear and fashion industry, with annual sales exceeding $ 30 billions, more than half of which now come from outside the United States. The company was co-founded in 1964 by Phil Knight, a CPA at Price Waterhouse, and Bill Bowerman, college track coach, each investing $ 500 to start. The company, initially called Blue Ribbon Sports, changed its name to Nike in 1971 and adopted the “Swoosh” logo—recognizable around the world—originally designed by a college student for $35. Nike became highly successful in designing and marketing mass-appealing products such as the Air Jordan, the best selling athletic shoe of all time.

Nike has no production facilities in the United States. Rather, the company manufactures athletic shoes and garments in such Asian countries as China, Indonesia, and Vietnam using subcontractors, and sells the products in the U.S. and international markets. In each of those Asian countries where Nike has production facilities, the rates of unemployment and under-employment are relatively high. The wage rate is very low in those countries by U.S. standards—the hourly wage rate in the manufacturing sector is less than $ 2 in each of those countries, compared with about $ 35 in the United States. In addition, workers in those countries often operate in poor and unhealthy environments and their rights are not particularly well protected. Understandably, host countries are eager to attract foreign investments like Nike’s to develop their economies and raise the living standards of their citizens. Recently, however, Nike came under worldwide criticism for its practice of hiring workers for such a low rate of pay—“next to nothing” in the words of critics—and overlooking poor working conditions in host countries.

Initially, Nike denied the sweatshop charges and lashed out at critics. But later, the company began monitoring the labor practice at its overseas factories and grading the factories in order to improve labor standards. Nike also agreed to random factory inspections by disinterested parties.

Discussion questions:

1. Do you think the criticism of Nike is fair, considering that the host countries are in dire needs of creating jobs?
2. What do you think Nike’s executives might have done differently to prevent the sensitive charges of sweatshop labor in overseas factories?
3. Do firms need to consider the so-called corporate social responsibilities in making investment decisions?