Chapter 3, Problem 73PS

The file HotelPrices contains the prices in British pounds of a room at two-star, three-star, and four-star hotels in cities around the world in 2012. Complete the following for two-star, three-star, and four-star hotels:

a. Compute the mean, median, first quartile, and third quartile.

b. Compute the range, interquartile range, variance, standard deviation, and coefficient of variation.

c. Interpret the measures of central tendency and variation within the context of this problem,

d. Construct a boxplot. Are the data skewed? If so, how?

e. Compute the covariance between the average price at two-star and three-star hotels, between two-star and four-star hotels, and between three-star and four-star hotels.

f. Compute the coefficient of correlation between the average price at two-star and three-star hotels, between two-star and four-star hotels, and between three-star and four-star hotels.

g. Which do you think is more valuable in expressing the relationship between the average price of a room at two-star, three-star, and four-star hotels-the covariance or the coefficient of correlation?

Explain.

h. Based on (f), what conclusions can you reach about the relationship between the average price of a room at two-star, three-star, and four-star hotels?