The Consumer Reports customer satisfaction survey is based upon 148,599 visits to full service restaurant chains. Assume this data set is representative of the results reported. The variable restaurant “type” indicates whether the restaurant is an Italian restaurant or a seafood/steakhouse. Price indicates the average amount a person paid for dinner and drinks minus the tip. Score reflects overall customer satisfaction and a score of 80 can be interpreted as very satisfied. Assume alpha = 0.05 for all parts of this question. First, develop a dummy variable to indicate the restaurant’s “type”. Use a dummy variable code of ‘0’ to indicate an Italian restaurant and a ‘1’ to indicate a seafood/steakhouse. Develop a regression equation predicting the customer satisfaction score based upon both price and restaurant type. What is the predicted satisfaction score for an Italian restaurant when average meal price spent is $20? Which restaurant comes "closest" to being an "outlier" in a statistical sense based upon the regression model above? What is the value of F-critical? (F-critical is the 95th percentile of the benchmark F-distribution for this problem). Hint: You need to use an Excel formula to get this answer. Not found in the Excel regression output. Restaurant Type Price ($) Score Bertucci's Italian 16 77 Black Angus Steakhouse Seafood/Steakhouse 24 79 Bonefish Grill Seafood/Steakhouse 26 85 Bravo! Cucina Italiana Italian 18 84 Buca di Beppo Italian 17 81 Bugaboo Creek Steak House Seafood/Steakhouse 18 77 Carrabba's Italian Grill Italian 23 86 Charlie Brown's Steakhouse Seafood/Steakhouse 17 75 Il Fornaio Italian 28 83 Joe's Crab Shack Seafood/Steakhouse 15 71 Johnny Carino's Italian Italian 17 81 Lone Star Steakhouse & Saloon Seafood/Steakhouse 17 76 LongHorn Steakhouse Seafood/Steakhouse 19 81 Maggiano's Little Italy Italian 22 83 McGrath's Fish House Seafood/Steakhouse 16 81 Olive Garden Italian 19 81 Outback Steakhouse Seafood/Steakhouse 20 80 Red Lobster Seafood/Steakhouse 18 78 Romano's Macaroni Grill Italian 18 82 The Old Spaghetti Factory Italian 12 79 Uno Chicago Grill Italian 16 76
The Consumer Reports customer satisfaction survey is based upon 148,599 visits to full service restaurant chains. Assume this data set is representative of the results reported. The variable restaurant “type” indicates whether the restaurant is an Italian restaurant or a seafood/steakhouse. Price indicates the average amount a person paid for dinner and drinks minus the tip. Score reflects overall customer satisfaction and a score of 80 can be interpreted as very satisfied. Assume alpha = 0.05 for all parts of this question.
First, develop a dummy variable to indicate the restaurant’s “type”. Use a dummy variable code of ‘0’ to indicate an Italian restaurant and a ‘1’ to indicate a seafood/steakhouse. Develop a regression equation predicting the customer satisfaction score based upon both price and restaurant type.
What is the predicted satisfaction score for an Italian restaurant when average meal price spent is $20?
Which restaurant comes "closest" to being an "outlier" in a statistical sense based upon the regression model above?
What is the value of F-critical? (F-critical is the 95th percentile of the benchmark F-distribution for this problem).
Hint: You need to use an Excel formula to get this answer. Not found in the Excel regression output.
Restaurant | Type | Price ($) | Score |
Bertucci's | Italian | 16 | 77 |
Black Angus Steakhouse | Seafood/Steakhouse | 24 | 79 |
Bonefish Grill | Seafood/Steakhouse | 26 | 85 |
Bravo! Cucina Italiana | Italian | 18 | 84 |
Buca di Beppo | Italian | 17 | 81 |
Bugaboo Creek Steak House | Seafood/Steakhouse | 18 | 77 |
Carrabba's Italian Grill | Italian | 23 | 86 |
Charlie Brown's Steakhouse | Seafood/Steakhouse | 17 | 75 |
Il Fornaio | Italian | 28 | 83 |
Joe's Crab Shack | Seafood/Steakhouse | 15 | 71 |
Johnny Carino's Italian | Italian | 17 | 81 |
Lone Star Steakhouse & Saloon | Seafood/Steakhouse | 17 | 76 |
LongHorn Steakhouse | Seafood/Steakhouse | 19 | 81 |
Maggiano's Little Italy | Italian | 22 | 83 |
McGrath's Fish House | Seafood/Steakhouse | 16 | 81 |
Olive Garden | Italian | 19 | 81 |
Outback Steakhouse | Seafood/Steakhouse | 20 | 80 |
Red Lobster | Seafood/Steakhouse | 18 | 78 |
Romano's Macaroni Grill | Italian | 18 | 82 |
The Old Spaghetti Factory | Italian | 12 | 79 |
Uno Chicago Grill | Italian | 16 | 76 |
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