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BA 303 - BUSINESS STATISTICS -Discussion 2 Chapter 4, Problem 63

For the President’s Inn Guest Database, find the mean length of stay and mean number of guests per party. Is there any correlation between the size of the party and the length of stay?

A correlation coefficient is used to measure the relationship between two variables (Evans, 2020). The correlation coefficient scale is always between -1 and 1 including zero (Evans, 2020). -1 is indicative of a perfect negative correlation and 1 is indicative of a perfect positive correlation with 0 indicating no correlation between the two variables (Evans, 2020). Given the data from the President’s Inn Guestbook, we can attempt to find a correlation between the length of stay and the number of guests in each party. In doing this, we get a correlation coefficient of 0.361. Upon first glance, I thought this would mean that there is a positive correlation between length of stay and number of guests because it was so far away from -1. However, then I realized that the correlation coefficient is closest to the number 0. This means that while there may be a slight positive correlation, we can see by the scatter chart and the correlation coefficient that there does not seem to be a great correlation between length of stay and number of guests in each party.


Evans, J. R. (2019). Chapter 4. In Business analytics (3rd ed.). Pearson.

College of Business & Communications. (2020, May 12). Chapter 4 descriptive statistics, part 3 [Video]. YouTube. (18:04)

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