Task#1 (under Excel spreadsheet Task 1): 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. The dataset is a sample of 25 days (Monday through Thursday) from last year showing the restaurant income and the number of rooms occupied.
1) Does the revenue seem to increase as the number of occupied rooms increases? Draw a scatter diagram to support your conclusion.
2) Determine the correlation coefficient between the two variables. Interpret the value.
3) Is it reasonable to conclude that there is a positive relationship between revenue and occupied rooms? Use the .10 significance level.
4) What percent of the variation in revenue in the restaurant is accounted for by the number of rooms occupied?
Task#2 (under Excel spreadsheet Task 2): The Cronch Café, located at the Gulf of Mexico, has an increase in business during the summer vacation season. The owner hires a large number of servers as seasonal help. When he interviews a prospective server, he would like to provide data on the amount a server can earn in tips. He believes that the amount of the bill and the number of diners are both related to the amount of the tip. He gathered this sample information.
1) Develop a multiple regression equation with the amount of tips as the dependent variable and the amount of the bill and the amount of diners as independent variables. Write out the regression equation. How much does another diner add to the amount of the tips?
2) Conduct a global test of hypothesis to determine if at least one of the independent variables is significant What is your conclusion?