## Question 876:

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 day (Monday through Thursday) from last year showing the restaurant income and number of rooms occupied. 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?

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