Question

The weekly Hotel bill (HB) per traveller for COVID-19 mandatory quarantine accommodation
and centres are in high demand in Accra due to the limited accommodation facilities for these
persons. Government may withdraw from taking care of the costs as expert say that the COVID-
19 has come to stay with us similar to other diseases. For this reason, it has become imperative
for travellers to carefully plan for their accommodation. Information has been gathered to help
travellers predict hotel bill based on the following elements: number of people in a hotel (AA),
number of rooms in a hotel (AB), Hotel age (AC), number of beds in a room (AD), Internet
connection (AE), Availability of washroom in a room (AF), Distance from hotel to airport (AG)
and Traveller type (AH). The study primarily used primary data obtained from 84 travellers
sampled for the process. Data was analysed using the correlation and regression analysis. The
results from the correlation and regressions analysis are displayed in tables 1 and 2 respectively.

Table 2: Regression Result on Hotel Bill (HB) Variables AA AB AC AD HB Coefficient 0.248 1.936 -1.696 2.629 -8.09** 23.27*** 1.42* 3.056 84 38 Prob. 0.889 0.787 0.088 0.081 0.046 0.000 0.086 0.338 AE AF AG AH N R-Squared Page 3 of 4

i) Propose a suitable title for the study. (2 marks)
j) Formulate the null and alternate hypotheses for this study. (4 marks)
k) Was your hypothesis directional or non-directional? Justify. (2 marks)
l) Draw a conclusion for the study based on your null and alternate hypotheses and What basis did you draw the conclusion in (l) above?

Answer 1

Sol:

1. Since, correlation significant at 0.05 is denoted by ' and correlation significant at 0.01 is denoted by ''

So, the variables that have significant correlation at 0.05 are:

• AF and AB with correlation -0.189
• AG and AD with correlation 0.241
• AH and AE with correlation -0.203

the variables that have significant correlation at 0.01 are:

• AB and HB with correlation 0.351
• AC and HB with correlation -0.411
• AC and AB with correlation 0.249
• AD and HB with correlation 0.398
• AD and AB with correlation 0.492 and so on ....

Note: The correlation significant at 0.01 is also significant at 0.05 as 0.01 < 0.05

Now regression:

Model:

HB = 0.248AA + 1.936AB -1.696AC + 2.629AD -8.09AE +23.27AF +1.42AG+3.056AH

here, variables significant at 0.1have * , at 0.05 have ** and at 0.01 have ***

So, significant variables are: AC, AD, AE,AF,AG

R-sq = 38 means that the significant variables explain 38% variability in HB