Devin T.

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 Revenue Occupied Day Revenue Occupied

1 $1,452 60 14$ 1,425 31

2 1,361 20 15 1,445 51

3 1,426 21 16 1,439 62

4 1,470 80 17 1,348 45

5 1,456 70 18 1,450 41

6 1,430 29 19 1,431 62

7 1,354 30 20 1,446 47

8 1,442 21 21 1,485 43

9 1,394 15 22 1,405 38

10 1,459 36 23 1,461 36

11 1,399 41 24 1,490 30

12 1,458 35 25 1,426 65

13 1,537 51

Choose the scatter diagram that best fits the data.

Scatter diagram 1 Scatter diagram 2 Scatter diagram 3

Scatter diagram 1

Scatter diagram 2

Scatter diagram 3

Determine the coefficient of correlation between the two variables. (Round your answer to 3 decimal places.)

c-1. State the decision rule for 0.01 significance level: H0: ρ ≤ 0; H1: ρ > 0. (Round your answer to 3 decimal places.)

c-2. Compute the value of the test statistic. (Round your answer to 2 decimal places.)

c-3. Is it reasonable to conclude that there is a positive relationship between revenue and occupied rooms? Use the 0.01 significance level.

What percent of the variation in revenue in the restaurant is accounted for by the number of rooms occupied? (Round your answer to 1 decimal place.)

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