Help Save The Conch Café, located in Gulf Shores, Alabama, features casual lunch
ID: 3362806 • Letter: H
Question
Help Save The Conch Café, located in Gulf Shores, Alabama, features casual lunches with a great view of the Gulf of Mexico. To accommodate the increase in business during the summer vacation season, Fuzzy Conch, the owner, hires a large number of servers as seasonal help. When he interviews a prospective server, he would like to provide data on the amount a server can earn in tips. He believes that the amount of the bill and the number of diners are both related to the amount of the tip. He gathered the following sample information. Amount of Cus 5.98 4.58 1.e0 2.40 5.08 4.25 50 6.00 5.00 3.55 5.45 6.80 4.00 3.35 75 52.81 28.23 10.65 19.82 28.62 24.83 6.25 49.20 43.26 83.77 64.19 34.99 33.91 23.06 4.65 3.30 3.50 3.25 5.40 2.25 3.75 3.00 1.25 $23.59 22.30 32.00 50.82 17.68 43.14 20.27 19.53 27.03 21.28 43.38 28.12 26.25 65.28 59.11 2 17 18 19 2 21 23 24 10 3.80 6.25 5.60 2.50 5.60 8.10 26 13 14 15 28 29 30 Click here for the Excel Data File a-1. Develop a multiple regression equation with the amount of tips as the dependent variable and the amount of the bill and the Prex 1 of 8 1 Next >Explanation / Answer
a-1)
Model Summary
S R-sq R-sq(adj) R-sq(pred)
1.29762 52.93% 49.45% 26.82%
Coefficients
Term Coef SE Coef T-Value P-Value VIF
Constant 1.006 0.654 1.54 0.136
Bill 0.0636 0.0137 4.65 0.000 1.10
No_of Diners 0.300 0.218 1.38 0.179 1.10
a-2)Regression Equation
Tip = 1.006 + 0.0636 Bill + 0.300 No_of Diners
a-3) 0.0636 of dinner will added as tip amount.
d) Coefficient of determination r-sqaured= 52.93%
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