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Correlation Solution

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User Generated

Subject

Statistics

School

Cortiva Institute Pennsylvania School of Muscle Therapy

Type

Homework

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Linear Regression Model
a. Scatter diagram.
The data points appear to be scattered with a general increasing slope. There appears to be a
positive linear relationship between Income and the number of occupied rooms in the
restaurant. As the number of occupied rooms increase, income is predicted to increase.
b. Correlation coefficient and interpretation.
Correlation coefficient, r = 0.423
There is a moderate positive linear relationship between Income and the number of occupied
rooms in the restaurant.
c. Is it reasonable to conclude there is a positive relationship between revenue and occupied
rooms?
Correlation coefficient, r = 0.423
F(1,23) = 5.012
p-value = 0.035
Since p-value is less than 0.05 and the correlation coefficient is positive, it is reasonable to
conclude that there is a significant positive linear relationship between income and the
number of occupied rooms.
d. What percent of variation in revenue in the restaurant is accounted for by the number of rooms
occupied?
Percent variation = R-squared * 100% = 0.179 * 100% = 17.9%
Only 17.9% of variation in revenue in the restaurant is accounted for by the number of rooms
occupied.

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Linear Regression Model a. Scatter diagram. The data points appear to be scattered with a general increasing slope. There appears to be a positive linear relationship between Income and the number of occupied rooms in the restaurant. As the number of occupied rooms increase, income is predicted to increase. b. Correlation coefficient and interpretation. Correlation coefficient, r = 0.423 There is a moderate positive linear relationship between Income and the number of occupied rooms in the restaurant. c. Is it reasonable to conclude there is a positive relationship between revenue and occupie ...
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