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 Day Income Occupied
1 1,452 72 14 1,425 31
2 1,361 20 15 1,446 51
3 1,426 21 16 1,439 62
4 1,470 25 17 1,348 45
5 1,456 70 18 1,450 41
6 1,430 23 19 1,431 62
7 1,354 20 20 1,446 47
8 1,442 39 21 1,485 43
9 1,394 15 22 1,405 38
10 1,469 50 23 1,461 36
11 1,399 41 24 1,490 60
12 1,468 35 25 1,426 65
13 1,637 41
A) Determine the coefficient of correlation between the two variables. (Round your answer to 3 decimal places.)
B) State the decision rule for 0.1 significance level: H0: ? ? 0; H1: ? > 0 (Round your answer to 3 decimal places.)
C) Compute the value of the test statistic. (Round your answer to 2 decimal places.)
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.