A suburban hotel derives its gross income 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
|
|
1
|
1452
|
23
|
|
2
|
1361
|
47
|
|
3
|
1426
|
21
|
|
4
|
1470
|
39
|
|
5
|
1456
|
37
|
|
6
|
1430
|
29
|
|
7
|
1354
|
23
|
|
8
|
1442
|
44
|
|
9
|
1394
|
45
|
|
10
|
1459
|
16
|
|
11
|
1399
|
30
|
|
12
|
1458
|
42
|
|
13
|
1537
|
54
|
|
14
|
1425
|
27
|
|
15
|
1445
|
34
|
|
16
|
1439
|
15
|
|
17
|
1348
|
19
|
|
18
|
1450
|
38
|
|
19
|
1431
|
44
|
|
20
|
1446
|
47
|
|
21
|
1485
|
43
|
|
22
|
1405
|
38
|
|
23
|
1461
|
51
|
|
24
|
1490
|
61
|
|
25
|
1426
|
39
|
Employ a statistical software package to answer following questions.
a. Does the breakfast revenue seem to raise as the number of occupied rooms raises? Draw scatter diagram to support your conclusion.
b. Find out the coefficient of correlation between two variables. Interpret the value.
c. Is it reasonable to conclude that there is the positive relationship between revenue and occupied rooms? Employ the .10 significance level.
d. What percent of variation in revenue in restaurant is accounted for by number of rooms occupied?