Exhibit 10-2 A Manager of a Hotel Chain Is Interested in Investigating

question 4

Multiple Choice

Exhibit 10-2
A manager of a hotel chain is interested in investigating whether there is a relationship between staff labor hours and bed-day occupancy incurred by a hotel in a month.The manager randomly selected 17 of the hotels in the chain across the country and recorded, for each of the hotels, the staff's total labor hours for the month of July and the number of bed-days of occupancy for that month. (A hotel has occupied one "bed-day" if one bed is occupied (rented) for an entire day.) The manager is interested in seeing if the labor hours incurred can be predicted from the number of bed-days of occupancy on a monthly basis.
The sample data were analyzed using Excel.Shown below is part of the regression analysis output.

-Refer to Exhibit 10-2.According to this regression analysis,what is the predicted number of monthly labor hours required for a hotel with 3000 bed-day of occupancy for the month?

• A)4441.5
• B)3352.2
• C)4106.2
• D)3882.8

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Definitions:

Cost Of Completion

the estimated total expense required to finish a project, product, or service, often used in budgeting and financial projection.

Normal Profit

The minimum profit necessary for a company to remain competitive in its market, covering its opportunity costs.

Replacement Cost

The cost required to replace an asset with a new one of similar kind and quality at current prices.

Cost Of Completion

The estimated expenses associated with finishing a project, product, or service in its entirety.