solution

The manager of the Hospitality Inn has developed regression analysis equations for forecasting the hotel’s dining room sales volume based on the hotel’s anticipated guest-night count. The monthly equations (where Y equals the forecast number of meals to be served, and X equals the number of hotel guests) follow:

                    Breakfast                  Y = 750+ 0.82 X

                   Lunch                         Y =900 +1.15 X

                  Dinner                         Y =1,200 + 0.42 X

The hotel has 100 rooms. Its occupancy in November is expected to be 70% and its double occupancy rate is 40%. The average meal checks follow:

Breakfast         $ 5.25

Lunch              $10.24

Dinner             $15.78

Calculate the dining room’s forecast meal period sales, both in number of guests and sales revenue dollars, for the month of November.

 
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