Using Excel

Data in Travel file shows the average number of rooms in a variety of U.S cities and the average room rate and the average amount spent on entertainment. A company that run events for hotel residents wants to predict the amount spent on entertainment based on room rate and number of rooms.

Run the regression analysis. Are the coefficients statistically significant? Do we need to drop one of these variable? Which variable? Interpret the slope of the estimated regression equation?

Develop the least squares estimated regression equation. The average room rate in Chicago is $128, predict the entertainment expense per day for Chicago.

1. In the following three situations, the market is initially in equilibrium. Explain the changes in either supply or demand that result from each event. After each event described below, does a surplus or shortage exist at the original equilibrium price? What will happen to the equilibrium price as a result? Demonstrate your answer graphically.
A. 2015 was a very good year for California wine-grape growers, who produced a lot of grapes.
B. After a hurricane, Florida hoteliers often find that many people cancel their upcoming vacations, leaving them with empty hotel rooms.
C. Consider the market for new snowblowers. After a heavy snowfall, many people want to buy second-hand snowblowers at the local tool shop.
2. Use a supply and demand model to explain how the following occurrence is possible.
Lobster prices usually fall during the summer peak lobster harvest season, despite the fact that people like to eat lobster during the summer more than at any other time of year.

1. Old Billie is very excited for Letecia, but she is also worried about her. So she conducts a poll of 400 Avocado Park residents who have gone on a first date in the last month and asks them if they are glad they did. Old Billie has decided that she will stop the date from happening if there is less than a 75% chance that Letecia will be happy. Hadey tells her she is being extra, so she settles on a significance level of 0.01 to be safe.
   1. Identify the population of interest.
   2. Identify the variable of interest. What type of variable is it?
   3. What would be a suitable parameter for summarizing the variable you identified in part b?
   4. Write appropriate null and alternative hypotheses for Old Billie’s research goals.
   5. What assumptions must you make to perform a test on the null hypothesis you chose in part d?
   6. Calculate the P-Value and make a decision about the null hypothesis based on it.
   7. Summarize your decision from part f.

A.) A telephone manufacturer finds that the life spans of its telephones are normally distributed, with a mean of 6.7 years and a standard deviation of 0.5 year. (Round your answers to three decimal places.)

What percent of its telephones will last at least 7.25 years?

What percent of its telephones will last between 5.8 years and 6.8 years?

What percent of its telephones will last less than 6.9 years?

B.) The amount of time customers spend waiting in line at the ticket counter of an amusement park is normally distributed, with a mean of 6.5 min and a standard deviation of 1 min.

Find the z-score for the following data value 8 min.

Find the probability that a customer will wait less than 8 minutes. (Round your answer to three decimal places.)

Find the z-score for the following data value 6 min.

Find the probability that a customer will wait less than 6 minutes. (Round your answer to three decimal places.)

The following table shows age distribution and location of a random sample of 166 buffalo in a national park.

Use a chi-square test to determine if age distribution and location are independent at the 0.05 level of significance.

(a) What is the level of significance?

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State the null and alternate hypotheses.

H0: Age distribution and location are independent.

H1: Age distribution and location are not independent.

H0: Age distribution and location are not independent.

H1: Age distribution and location are not independent.

H0: Age distribution and location are not independent.

H1: Age distribution and location are independent.

H0: Age distribution and location are independent.

H1: Age distribution and location are independent.  

(b) Find the value of the chi-square statistic for the sample. (Round the expected frequencies to at least three decimal places. Round the test statistic to three decimal places.)

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1. For each of the following, define the random variable using words, tell what kind of distribution each has, and calculate the probabilities. Every day when Sally drives to school, she has a 70% chance of not finding a parking spot in the closest lot to her classroom (otherwise, she finds a spot). Each day is independent, meaning that finding a spot on one day doesn’t change the probability of finding a spot on any other day.

(a) (3 points) What is the probability that the tenth day is the fifth day that she gets a spot in the closest lot?

(b) (3 points) What is the probability that the tenth day is the first day that she gets a spot in the closest lot?

(c) (3 points) What is the probability that the she gets to park in the closest lot in 5 out of the next 10 days?

(d) (3 points) If she parks in the close lot at least 3 times in a week (5 days), she will treat herself to ice cream. What is the probability that she gets ice cream?

Coffee is a leading export from several developing countries. When coffee prices are high, farmers often clear forest to plant more coffee trees. Here are data on prices paid to coffee growers in Indonesia and the rate of deforestation in a national park that lies in a coffee-producing region for five years: Price(cents per pound) Deforestation (percent) 29 0.49 40 1.59 54 1.69 55 1.82 72 3.10 (a) Make a scatterplot. What is the explanatory variable? What kind of pattern does your plot show? (b) Find the correlation r step-by-step. That is, find the mean and standard deviation of the two variables. Then find the five standardized values for each variable and use the formula for r.

Explain how your value for r matches your graph in (a). (c) Now enter these data into your calculator or Excel and use the correlation function to find r. Check that you get the same result as in (b). PLEASE, GIVE A DETAILED SOLUTION. THANK YOU IN ADVANCE!

Text exercise 39 page 638. This question uses the same data as exercise 2 above, and the data is in the accompanying spreadsheet.

(a) Estimate the regression in Excel and report the regression line.                                  [2 pts]

(b) Calculate a  95% confidence interval for the forecast of the average amount spent on entertainment at a city where the room rate is $89.                                                       [3 pts]

(b) Calculate a  90% confidence interval for the forecast of the idiosyncratic amount spent on entertainment at a city where the room rate is the average rate of $128.                        [3 pts]

(d) Use a t-test to test the hypothesis that there is a 1 to 1 relationship between entertainment expenses and hotel expenses. (ie test H0: β=1)                                                    

DATA:

[The following information applies to the questions displayed below.] The following data pertain to the Aquarius Hotel Supply Company for the year just ended. Budgeted sales revenue

Required: 1. Compute the firm’s predetermined overhead rate for the year using each of the following common cost drivers: a. machine hours b. direct labor hours c. direct labor dollars

2. Calculate the overapplied or underapplied overhead for the year using each of the following cost drivers. a. machine hours b. direct labor hours c. direct labor dollars