Analyzing Revenue: Scatter Diagram, Variation in Revenue
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** Please see the attachment for the complete problem description **
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 an number of rooms occupied.
(Please see the attached file)
Use a statistical software package to answer the following questions.
a) Does the breakfast revenue seem to increase as the number of occupied rooms increases? Draw a scatter diagram to support your conclusion.
b) Determine the coefficient of correlation between the two variables. Interpret the value.
c) Is it reasonable to conclude that there is a positive relationship between revenue and occupied rooms? Use the .10 significance level.
d) What percent of the Variation in revenue in the restaurant is accounted for by the number of rooms occupied?
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Solution Summary
In this solution, we analyze the revenue of a given company based on given data using a scatter plot.
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** Please see the attached file for the complete solution response **
I also attached the output of the statistical software.
As can be seen in the above scatter plot, there is a moderate trend that shows the breakfast revenue seems to increase as the number of occupied rooms increases. However, there are some data points that clearly do not fit ...
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