Homework 2 Regression 3. The Consumer Reports Restaurant Customer satisfaction s

Question

Homework 2 Regression 3. The Consumer Reports Restaurant Customer satisfaction survey is based upon 148,599 visits to full-service restaurant chains (Consumer Reportswebsite, February 11 2009). Assume the following data are representative of the results reported. The variable type indicates whether the restaurant is an Italian restaurant or a seafood/steakhouse Price indicates the average amount paid per person for dinner and drinks, minus the tip Score reflects diners' overall satisfaction, with higher values indicating greater overall satisfaction. A score of 80 can be interpreted as very satisfied. Restaurant Type Score Price Bertucci s Italian 16 Black Angus Steakhouse Seafood/Steakhouse 79 24 See RetaurantRatings.xls for complete data a) Set a dummy variable that will account for the type of restaurant (Italian or seafood/steakhouse) to develop the estimated regression equation to show how overall custome satisfaction is related to the average meal rice and the type of restaurant. b) From your Excel Result, ls type of restaurant a significant factor in overall customer satisfaction at 0.05 level of significance? cy predict the Consumer Reports customer satisfaction score for a seafood/steakhouse that has an average meal price of $20. How much would the predicted score have changed for an ltalian restaurant?

Explanation / Answer

Let Score be the dependent variable and price and type are independent variables.

This is the problem of multiple regression.

We can do multiple regression in EXCEL

steps :

ENTER data into EXCEL sheet --> Data --> Data Analysis --> Regression --> Ok --> Input Y Range : select score data with labels --> Input X Range : select type and price data with labels --> click on labels --> Output Range :select one empty cell --> ok

The regression equation is,

score = 70.4 - 3.04 type + 0.573 price

Here we see that type is significant factor because P-value for type is 0.017

Which is less that alpha (0.05).

Now we have to find score when price = $20 and type = 1

This we can find using regression equation

score = 70.4 - 3.04 type + 0.573 price

score = 70.4 - 3.04 * 1 + 0.573 * 20 = 78.82

And also we have to find score when price = $20 and type = 0

score = 70.4 - 3.04*0 + 0.573*20 = 81.86

Related Questions

Navigate

• Browse (All)
• Browse H
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.