To answer the following question, please use statistical software like SPSS. Data can be found in the excel sheet attached.
1. 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. In the excel file, the tab labeled Question 1 gives a sample of 25 days (Monday through Thursday) from last year showing the restaurant income and number of rooms occupied.
a. Does the breakfast revenue seem to increase as the number of occupied rooms increases?
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 0.10 significance level.
d. What percent of the variation in revenue in the restaurant is accounted for by the number of rooms occupied?
This solution presents a graphical display of the data to derive the regression equation with the coefficient of correlation. It also conducts an ANOVA analysis to accept or reject the null hypothesis on the revenue and occupied rooms. All steps and formulas are shown in an Excel file.