Reject Ho if t>: _______ (0.1 significance) A suburban hotel derives its gross i
ID: 2958619 • Letter: R
Question
Reject Ho if t>: _______ (0.1 significance)
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 income and number of rooms occupied.
Income Occupied
1452 23
1361 47
1426 21
1470 39
1456 37
1430 29
1354 23
1442 44
1394 45
1459 16
1399 30
1458 42
1537 54
1425 27
1445 34
1439 15
1348 19
1450 38
1431 44
1446 47
1485 43
1405 38
1461 51
1490 61
1426 39
Explanation / Answer
Given n=25, =0.1, the critical value is |t(0.025, df=n-2=23)|=2.068 (check student t table)
So Reject Ho if t>2.068