Question

Exercise 13-40 (LO13-2) A suburban hotel derives its revenue 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 Day 14 15 Occupied 31 51 20 16 17 70 18 23 Revenue Occupied $ 1,452 65 1,361 1,426 21 1,470 50 1,456 1,430 1,354 1,442 1,394 15 1,459 36 1,399 1,458 35 1,537 65 NPUN 19 Revenue $ 1,425 1,445 1,439 1,348 1,450 1,431 1,446 1,485 1,405 1,461 1,490 1,426 30 47 21 21 43 22 10 23 38 36 30 65 41 11 12 24 25 13 Click here for the Excel Data File

Answer 1

(x-x)? 1452 1361 1426 1470 1456 1430 1354 1442 1394 1459 1399 1458 1537 1425 1445 1439 1348 1450 1431 1446 1485 270.2736 5559.1936 91.3936 1186.1136 417.7936 30.9136 6652.0336 41.4736 1727.2336 549.4336 1336.6336 503.5536 10290.0736 111.5136 89.1136 11.8336 7666.7536 208.5136 20.7936 108.9936 2444.3136 933.9136 647.1936 2963.7136 91.3936 43954.1600 SSX (y-7) 541.9584 471.7584 429.3184 68.5584 799.7584 350.4384 137.3584 429.3184 713.9584 32.7184 0.5184 45.1584 541.9584 114.9184 86.1184 411.2784 10.7584 0.5184 411.2784 27.8784 1.6384 13.8384 32.7184 137.3584 541.9584 6353.0400 SSY (x-x)(y-7) 382.7232 1619.4432 198.0832 285.1632 578.0432 104.0832 955.8832 -133.4368 1110.4832 - 134.0768 26.3232 - 150.7968 2361.5232 113.2032 87.6032 69.7632 -287.1968 -10.3968 -92.4768 55.1232 63.2832 113.6832 -145.5168 -638.0368 -222.5568 6309.9200 SXY 1405 30 1461 1490 1426 35889 1435.560 65 Total Mean 1043 41.720 null hypothesis: Alternate Hypothesis: P for 0.01 level,right tailed test and n-2=23 degree of freedom, critical t= Decision rule: reject Ho if test statistic t>2.5 2.4999 correlation coefficient r= S/VS.*syy) = 0.3776 cest statistic: r* [V(n-2)/(1-x2)) 1.956

b)

correlation coefficient r=0.378

c-1)reject Ho if t >2.500

c-2) test statistic =1.96

d)% of variation =14.3%