Explore BrainMass
Share

Relationship between rooms occupied and revenue per day

This content was STOLEN from BrainMass.com - View the original, and get the already-completed solution here!

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 23 14 $1,425 27
2 1,361 47 15 1,445 34
3 1,426 21 16 1,439 15
4 1,470 39 17 1,348 19
5 1,456 37 18 1,450 38
6 1,430 29 19 1,431 44
7 1,354 23 20 1,446 47
8 1,442 44 21 1,485 43
9 1,394 45 22 1,405 38
10 1,459 16 23 1,461 51
11 1,399 30 24 1,490 61
12 1,458 42 25 1,426 39
13 1,537 54

© BrainMass Inc. brainmass.com October 25, 2018, 2:01 am ad1c9bdddf
https://brainmass.com/statistics/correlation-and-regression-analysis/relationship-between-rooms-occupied-and-revenue-per-day-283303

Solution Summary

A Complete, Neat and Step-by-step Solution is provided in the attached Excel file.

$2.19
See Also This Related BrainMass Solution

Statistics significance level of gross income from its hotel and restaurant operations

40. 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 $1452 23 14 $1425 27
2 1361 47 15 1445 34
3 1426 21 16 1439 15
4 1470 39 17 1348 19
5 1456 37 18 1450 38
6 1430 29 19 1431 44
7 1354 23 20 1446 47
8 1442 44 21 1485 43
9 1394 45 22 1405 38
10 1459 16 23 1461 51
11 1399 30 24 1490 61
12 1458 42 24 1426 39
13 1537 54

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?

View Full Posting Details