Question 10.87

10.87 Check the outliers.

The plot you generated in Exercise 10.85 has two observations that appear to be outliers.

  1. Identify these points on a plot of the data.
  2. Rerun the analysis with the other 12 hotels, and summarize the effect of the two possible outliers on the results that you gave in Exercise 10.85.

10.87

(a) They are very large hotels with more than 1000 rooms. (b) The analysis changes drastically. . The data are no longer significant at the 5% level with these outliers removed. The previous results likely are not valid as the significance seen was just due to these 2 outliers.