The file, Hotel Prices, contains the average prices of a room at two-star, three

Question

The file, Hotel Prices, contains the average prices of a room at two-star, three-star, and four-star hotels in cities around the world in 2010 in English pounds. Many of the summary statistics for the hotels are given below. a) Interpret the measures of central tendency and variation within the context of this problem. b) Based on the correlations given what conclusions can you reach about the relationship between the average price of a room in two-star, three-star, and four-star hotels. Two-Star Three-Star Four-Star Mean 61.07143 82 116.4762 Median 64 85 116.5 Mode 68 87 124 Standard Deviation 19.1278 24.49888 32.56606 Sample Variance 365.8728 600.1951 1060.548 Range 87 124 137 Minimum 23 28 63 Maximum 110 152 200 Sum 2565 3444 4892 Count 42 42 42 First Quartile 49 63 96 Third Quartile 71 94 135 CV 31.32% 29.88% 27.96% Interquartile Range 22 31 39 Correlation Coefficient Matrix Two-Star Three-Star Four-Star Two-Star 1 Three-Star 0.78551 1 Four-Star 0.612835 0.851548 1

Explanation / Answer

a) The explanation for the measures of central tendency for the star hotels based on the data provided in the question.

Mean - 61.07143, 82, 116.4762 - This is the average value of the price

Median - 64 85 116.5 - Reprsent the centre value of the price when arranged in ascending or descending order

Mode - 68 87 124 - The price which occur for maximum number of hotels in each bucket

Standard Deviation 19.1278 24.49888 32.56606 - Standard deviation gives an idea of the spreadness of the data. The data present shows that the data the four star hotels shows the maxium variation of prices across hotels

Sample Variance 365.8728 600.1951 1060.548 - Shows the same thing as Standard deviation. Squared value of Standard deviation is Variance

Range 87 124 137 - Difference between maximum and minimum price

Minimum 23 28 63 - Minimum price in each category

Maximum 110 152 200 - Maximum price in each category

Sum 2565 3444 4892 - Sumof the prices of hotels in each category

Count 42 42 42 - Number of hotels in each category

First Quartile 49 63 96 - This is the 25th Percentile value when arranged in ascending order

Third Quartile 71 94 135 - This is the 75th Percentile value when arranged in ascending order

Interquartile Range 22 31 39 - Difference between the third and first quartile values

Correlation Coeffient - This value gives how strongly the data of the two category related to each other. If the correlation coefficinet is greater than 80%, this shows that the prices on the two category are highly related

Related Questions

Navigate

• Browse (All)
• Browse T
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.