The Cronch Café, located at the Gulf of Mexico, has an increase in business during the summer vacation season. 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 this sample information. 1) Develop a multiple regression model with the amount of tips as the dependent variable and the amount of the bill and the amount of diners as independent variables.  Write out the regression equation. How much does another diner add to the amount of the tips? 2) Conduct a global test of hypothesis to determine if at least one of the independent variables is significant. What is your conclusion?  Customer Amount of Tip ($) Amount of Bill ($) Diners 1 5.15 74.5 2 2 4.5 28.23 4 3 1 10.65 1 4 2.4 19.82 3 5 5 28.62 3 6 4.25 24.83 2 7 0.5 6.25 1 8 6 49.2 4 9 5 43.26 3 10 4.65 62.23 1 11 5.6 84.81 1 12 6 34.99 3 13 4 33.91 4 14 3.35 23.06 2 15 0.75 4.65 1 16 3.3 23.59 2 17 3.5 22.3 2 18 3.25 32 2 19 5.4 50.02 4 20 2.25 17.6 3 21 4.35 63.16 6 22 3 20.27 2 23 1.25 19.53 2 24 3.25 27.03 3 25 3 21.28 2 26 6.25 43.38 4 27 5.6 28.12 4 28 2.5 26.25 2 29 6.85 53.08 7 30 8.6 87.85 8

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Author:Amos Gilat
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The Cronch Café, located at the Gulf of Mexico, has an increase in business during the summer vacation season. 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 this sample information.
1) Develop a multiple regression model with the amount of tips as the dependent variable and the amount of the bill and the amount of diners as independent variables.  Write out the regression equation. How much does another diner add to the amount of the tips?
2) Conduct a global test of hypothesis to determine if at least one of the independent variables is significant. What is your conclusion? 
Customer Amount of Tip ($) Amount of Bill ($) Diners
1 5.15 74.5 2
2 4.5 28.23 4
3 1 10.65 1
4 2.4 19.82 3
5 5 28.62 3
6 4.25 24.83 2
7 0.5 6.25 1
8 6 49.2 4
9 5 43.26 3
10 4.65 62.23 1
11 5.6 84.81 1
12 6 34.99 3
13 4 33.91 4
14 3.35 23.06 2
15 0.75 4.65 1
16 3.3 23.59 2
17 3.5 22.3 2
18 3.25 32 2
19 5.4 50.02 4
20 2.25 17.6 3
21 4.35 63.16 6
22 3 20.27 2
23 1.25 19.53 2
24 3.25 27.03 3
25 3 21.28 2
26 6.25 43.38 4
27 5.6 28.12 4
28 2.5 26.25 2
29 6.85 53.08 7
30 8.6 87.85 8
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