SET A

TRIBHUVAN UNIVERSITY
Nepal Academy of Tourism and Hotel Management (NATHM)
Ravi Bhawan, Kathmandu
End Semester Internal (Pre-board) Examination 2024
Full Marks: 100
Time: 4Hrs. Pass Marks: 50
MHM/ Second Semester/ MHM 506: Quantitative Analysis for Tourism & Hospitality
Candidates are required to give their answers in their own words as far as practicable.

Group A
Case Analysis [152=30 marks]
1. In the hospitality industry, hotel managers strive to optimize their revenue streams through various
strategies, including investments in technology and online presence through social media marketing. The
performance of a hotel, measured in terms of revenue, often correlates with its expenditure on technology
and social media advertising. The following data represents the revenue generated by seven hotels along
with their corresponding expenses in technology and social media advertisement:
Revenue (in lakh rupees’) 110 90 88 75 55 60 80
Expenses in Technology (in thousand rupees) 55 50 30 40 25 30 52
Expenses in social media advertisement (in 10 15 40 33 22 32 50
thousand rupees)
a) Using this data, develop a regression model to predict the revenue of hotels based on their expenditures
in technology and social media advertisement.
b) Predict the revenue if the expenses in technology are Rs 60,000 and the expenses in social media
advertisement are Rs 20,000.
c) Interpret the meaning of slopes in the model obtained above.
d) What percentage of the variation in revenue is explained by the expenses in technology and social media
in the model above?
2. A hotel chain operates three properties: Hotel X, Hotel Y, and Hotel Z. The table below displays the
monthly revenue, measured in ten thousand rupees, for each hotel:
Hotel X: 65, 70, 80, 75, 85
Hotel Y: 90, 95, 100, 85, 80
Hotel Z: 75, 80, 70, 85, 90
Perform an analysis of variance (ANOVA) to determine whether there are significant differences in the
average monthly revenue among these three hotels.
Formulate the null and alternative hypotheses for the ANOVA test.
Calculate the necessary statistics and conduct the ANOVA test.
Interpret the results of the ANOVA test in the context of this hotel scenario.
Group B
Problem solving critical analysis questions.
Attempt any three questions [153=45 marks]
3.
a. Poisson distribution, calculate the probability that the receptionist handles the following scenarios:
(a) At least one guest.
(b) More than 4 guests.
(c) Up to 6 guests.
 b. A hospitality manager is interested in understanding whether there is any correlation between the
geographical location of guests and their dining preferences (e.g., fine dining, casual dining, room
service). The following table displays the number of guests from different regions who prefer each
dining option:

Dining Preference Urban Suburban Rural

Fine Dining 200 120 80

Casual Dining 300 180 120

Room Service 150 100 50

Perform the appropriate statistical test to analyze the association between the geographic location and
dining preferences.
4.
a. The following table represents the responses of 700 customers regarding their satisfaction with the ease
of use and security features of a banking app, Secure Bank:
Satisfaction Ease of use satisfaction Security Satisfaction
Satisfied 400 220
Not satisfied 300 80
Total 700 300
If one of these 700 customers was selected at random, what is:
(i) the probability that a customer is satisfied with the ease of use but not with the security features of the
app?
(ii) the probability that a customer is satisfied with the security features but not with the ease of use of
the app?
(iii) the probability that a customer is both satisfied with the ease of use and the security features of the
app?

b. In a trivariate distribution, it is found that r12 = 0.8, r13 = 0.5 and r23 = 0.9 find the partial correlations of
r12.3 and r23.1 and multiple correlations R1.23.
5.
a. The number of guests staying at a hotel follows a normal distribution with a mean occupancy of 80
rooms and a standard deviation of 10 rooms. Estimate the number of nights where the hotel's occupancy
will be: (i) between 75 and 85 rooms.(ii) less than 70 rooms.
b.
Sales department of a hotel implemented a new training program for its sales team and recorded their
sales figures before and after the training. The data below represents the sales figures (in thousands of
dollars) before and after the training:

Before training sales 60 68 53 75 85 99 75 96

After training sales 66 69 59 80 91 102 95 99
Test whether the training program was effective in improving sales performance.
6.
a. A manufacturer of smartphone batteries claims that their batteries have an average lifespan of 24 hours
under normal usage conditions. However, a quality control manager suspects that the actual lifespan
might be different. After taking a sample of ten batteries, the following lifespans (in hours) were
obtained: 25, 23, 24, 22, 26, 24, 25, 23, 23, 25
Test the null hypothesis H0: μ = 24 hours against the alternative hypothesis H1: μ ≠ 24 hours using a
significance level of α = 0.05.

b. A study was conducted to assess the usage of hotel loyalty programs among travelers. In a random
sample of 250 travelers, 70 reported being members of a hotel loyalty program. Calculate a 95%
confidence interval for the proportion of travelers who are members of hotel loyalty programs.

Group C
Concept based short answer questions.
Attempt any five questions [55=25 marks]

7. How is statistics used in the hospitality industry?

8. Define and provide examples of different hypotheses in the context of hospitality research.
9. Explain sampling and outline various types of random sampling methods applicable in hospitality
research.
11. The CEO of a hotel chain claims that the average satisfaction score of guests staying at their hotels is at
least 8 out of 10. A random sample of 150 guests staying at their hotels produces a mean satisfaction
score of 7.5 with a standard deviation of 1.2. Using a 5% level of significance, can you conclude that the
CEO's claim is true?
12. The following are the annual revenues (in million rupees) generated by a chain of restaurants over the
past 10 years. Calculate the average revenue and standard deviation of revenue for this period.

Year 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

Revenue in million Rs 220 250 220 260 190 220 230 180 150 210
 SET B
TRIBHUVAN UNIVERSITY
Nepal Academy of Tourism and Hotel Management (NATHM)
Ravi Bhawan, Kathmandu
End Semester Internal (Pre-board) Examination 2024
Full Marks: 100
Time: 4Hrs. Pass Marks: 50
MHM/ Second Semester/ MHM 506: Quantitative Analysis for Tourism & Hospitality
Candidates are required to give their answers in their own words as far as practicable.

Group A
Case Analysis [152=30 marks]

1. A sample of 8 restaurants in a city is selected for a study on the factors influencing daily revenue. It is
assumed that the revenue depends on factors such as location attractiveness and marketing expenditure.
Using the following information on daily revenue, location attractiveness score, and marketing
expenditure, answer the following questions:
Restaurant 1 2 3 4 5 6 7 8

Daily Revenue (in thousands of rupees) 30 35 40 38 42 55 48 50

Location Attractiveness Score 7 8 7 6 9 8 7 9

Marketing Expenditure (in thousands of

rupees) 10 12 15 13 18 20 17 22

a. Find the estimation equation of daily revenue based on location attractiveness score and marketing
expenditure.
b. Predict the daily revenue if the location attractiveness score is 8 and the marketing expenditure is Rs
25,000.
c. Interpret the meaning of the slope in the model obtained above.
d. Determine the percentage of variation in daily revenue explained by location attractiveness score
and marketing expenditure.

2. A restaurant chain operates three locations: Restaurant A, Restaurant B, and Restaurant C. The
table below displays the monthly revenue, measured in ten thousand rupees, for each
restaurant:
Restaurant A: 60, 65, 70, 75, 80
Restaurant B: 85, 90, 95, 100, 105
Restaurant C: 70, 75, 80, 85, 90

Perform an analysis of variance (ANOVA) to determine whether there are significant

differences in the average monthly revenue among these three restaurants.

State the null and alternative hypotheses for the ANOVA test.

Calculate the necessary statistics and conduct the ANOVA test.

Interpret the results of the ANOVA test in the context of this restaurant scenario.
 Group B
Problem solving critical analysis questions.
Attempt any three questions [153=45 marks]
3.

a. The following data represents the anxiety levels of a group of individuals before and after participating
in a mindfulness meditation program.
Participant A B C D E F G H I
Before (B) 18 22 25 20 16 28 24 19 23
After (A) 15 20 21 18 14 24 20 17 19

Are anxiety levels significantly reduced after participating in the mindfulness meditation program? Use
a significance level of α = 0.05.

b. The following table shows the result of vaccination against COVID-19 in a certain community. A hotel
chain is considering implementing a new customer loyalty program to increase repeat bookings. The
following table shows the results of a pilot study comparing guests enrolled in the loyalty program with
those who are not enrolled:

Patient Repeated Bookings No Repeated Bookings Total

Loyalty Program Group 120 380 500

Non-Loyalty Program Group 90 410 500

Total 210 790 1000

Test whether the loyalty program is effective in increasing repeat bookings at a 5% level of significance.
4.
a. A researcher claims that the standard deviation for the average number of nightly bookings in a hotel is
15. They want to estimate the average nightly bookings using a 95% confidence level with a margin of
error of 2. How large a sample of nights is required?
b. Exit surveys have been conducted to measure the cleanliness of hotel rooms. In Hotel X, 15 out of 600
guests reported dissatisfaction with room cleanliness, while in Hotel Y, 20 out of 400 guests reported
dissatisfaction. Can it be concluded at a 1% level of significance that the cleanliness dissatisfaction rate
in Hotel Y is higher than that of Hotel X?
5.
a. A study is conducted to investigate whether there is a difference in the average daily wages between
full-time and part-time employees. The sample data for daily wages of full-time and part-time
employees are given below. Test whether full-time and part-time employees earn equally.
Full-time Part-time Sample Size
Mean Wage (Rs) 1800 1550 50
Standard Deviation (Rs) 200 180 60
b. The time taken by a customer service representative to resolve a customer query follows a normal
distribution with a mean of 12 minutes and a standard deviation of 4 minutes. Find the probability that a
randomly selected customer: (i) Has to wait between 10 and 16 minutes for their query to be resolved.
(ii) Has to wait less than 8 minutes for their query to be resolved.
6.

a. To compare the average wait time for taxis in two cities, ten taxi stands were selected at random in each
city. The following observations were obtained:
City X: 8, 10, 12, 15, 9, 11, 13, 14, 10, 12
City Y: 11, 14, 13, 16, 10, 12, 15, 17, 12, 14
Test whether the average wait time can be said to be the same in the two cities.

b. A travel agency offers tour packages to different destinations, each managed by a specific tour operator.
A sample of 500 tour packages was selected and classified into two categories: "highly-rated" and
"poorly-rated." The results were given in the following table:
If a tour package is selected at random from this sample, find the following probabilities:

Tour Operator A Tour Operator B Tour Operator C Total

Highly-Rated 120 80 60 260

Poorly-Rated 40 60 40 140

Total 160 140 100 400

It is managed by Tour Operator B.
It is managed by Tour Operator A given that it is poorly-rated.
It is poorly-rated given that it is managed by Tour Operator C.
A highly-rated tour package is managed by Tour Operator B.

Group C
Concept based short answer questions.
Attempt any five questions [55=25 marks]
7. Given that r12=0.82, r13=0.77 and r23=0.80 determine r12.3 and R1.23
8. The probability that a restaurant receives a positive review from a food critic is 0.7. Five restaurants are
reviewed by the critic. What is the probability that:
(i) Exactly 3 restaurants will receive a positive review?
(ii) At least four restaurants will receive a positive review?

9. The customer satisfaction scores (out of 100) for eight hotels are as follows: 90, 85, 78, 92, 88, 70, 95,
82. Calculate the mean and standard deviation of the customer satisfaction scores.
10. Why is sampling necessary for different studies of hotel management? Describe the sampling which is
mostly used in tourism and hospitality management?
11. How does statistics contribute to decision-making processes in the hospitality industry?
12. Define and differentiate between descriptive and inferential statistics, providing examples of their
applications in hospitality research.