Question: 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 incoMeand number of rooms occupied.

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?

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