Issues Using Statistical Techniques of the Hotel Chain in the UK - Statistics Project Example

1st Year Certificate of Higher Education Database Assignment 11 _________________________________________________________________________ IA-706-AU QUANTITATIVE METHODS AND INFORMATION TECHNOLOGY _________________________________________________________________________ Report Title: An Analysis of Existing Hotel Provision in London, Cardiff and Edinburgh Assignment: Database Assignment Group: Group B Student Name: Assignment Due Date: Friday 17 December Table of Contents Introduction (Background) 3 Data Collection Method 3 Analysis and Findings 4 Summary Statistics 4 Statistical Analyses (Inferential Statistics) 6 Hotel’s Star rating based on Cities 6 Prices of Hotel Rooms based on Cities 7 Price of Hotel Rooms based on Star Ratings 8 Proportion of Hotels with Swimming Pools based on Cities 9 Proportion of Hotels with Swimming Pools based on Star Ratings 10 Price of Hotel Rooms based on Hotels with Swimming Pools 10 Influence of Hotel’s Guest Rating and Star Rating on the Price of Hotel Room 11 Recommendations 12 Reference 13 Appendix I: Output using MegaStat (An Excel Add-in) 14 An Analysis of Existing Hotel Provision in London, Cardiff and Edinburgh Introduction (Background) An overseas hotel chain is considering branching into the UK. Therefore, the Management wishes to undertake an analysis of existing hotel provision in the three cities of London, Cardiff and Edinburgh. They are particularly interested in the following issues: The mix of hotels in these cities by star rating, and does this differ between cities? Comparison of the prices of hotel rooms between cities and between hotels with different star ratings. Difference in proportion of hotels with swimming pools between cities and between hotels with different star ratings? Difference in the price of rooms based on swimming pools facility? Any other interesting aspects of hotel provision in the cities. This report will analyze above issues using statistical techniques (descriptive and inferential statistics) and presents finding and recommendation based on it. Data Collection Method Initially, a list of hotels names in the three cities of London, Cardiff and Edinburgh is prepared. Thereafter, around 250 hotels name are randomly selected from the list and a survey is undertaken in these hotels. The data collected in the survey for the location, swimming pools (yes/no), star rating, guest rating, free breakfast (yes/no), and price of the rooms. Total 214 hotels response collected that includes 75 hotels in London, 80 hotels in Edinburgh and 59 hotels in Cardiff. Analysis and Findings Summary Statistics The sample consists of 214 hotels with 35% in London, 37% in Edinburgh, and remaining 28% in Cardiff (figure 1). As shown in figure 2, around 37% hotels are with 3-star ratings and around 34% hotels are with 4-star rating. The hotels with 2-star and 5-star rating are 11%, and 17%, respectively. Only, about one-fourth (26%) of the hotel have swimming pools (figure 3). Most (91%) of the hotels do not provide free breakfast (figure 4). Figure 1: Hotels in the three cities of London, Cardiff and Edinburgh Figure 2: Hotels with different star ratings Figure 3: Hotels with and without swimming pools Figure 4: Hotels providing free breakfast Table 1 shows the characteristics of hotels in the three cities in terms of star rating, room price and guest rating. The average star rating of the hotels in the three cities of London, Cardiff and Edinburgh is about 3.6 and varies from its mean by about 0.9. About half of the hotels have star ratings greater than or equal to 4. The average price of hotel room is about £127 and varies from its mean by about £85. About half of the hotels have room price less than or equal to £90. The range of the room price is £417 with minimum and maximum room price being £33 and £450, respectively. The distribution of the price of rooms is positively skewed. Table 1: Characteristics of the hotel’s star rating, room price and guest rating   Star Rating Price (£) Guest Rating (on scale of 10) Mean 3.57 126.74 8.07 Median 4 99 8.2 Mode 3 60 8.2 Standard Deviation 0.90 84.88 1.02 Kurtosis -0.80 1.90 2.73 Skewness 0.02 1.47 -1.11 Range 3 417 6.8 Minimum 2 33 3.2 Maximum 5 450 10 Count 214 214 206 The average guest rating of hotel room is about 8.07 and varies from its mean by about 1.02. About half of the hotels have guest rating more than or equal to 8.2. The range of the guest rating is 6.8 with minimum and maximum guest rating being 3.2 and 10, respectively. The distribution of guest rating is negatively skewed. Statistical Analyses (Inferential Statistics) Hotel’s Star rating based on Cities The research question examined is: “Is there a difference in hotels star ratings between the three cities of London, Cardiff and Edinburgh?” The hypotheses tested are: H0: µLondon = µCardiff = µEdinburgh H1: The means are not all equal. The results of the ANOVA test are statistically significant, F(2, 211) = 5.17, p = .006 ( Read More