Tips. In restaurants, servers rely on tips as a majorsource of income. Does serving candy after the mealproduce larger tips? To find out, two waiters determinedrandomly whether or not to give candy to 92 diningparties. They recorded the sizes of the tips and reportedthat guests getting candy tipped an average of 17.8%of the bill, compared with an average tip of only 15.1%from those who got no candy. (Source: “Sweetening theTill: The Use of Candy to Increase Restaurant Tipping.”Journal of Applied Social Psychology 32, no. 2 [2002]:300–309)a) Was this an experiment or an observational study?Explain.b) Is it reasonable to conclude that the candy causedguests to tip more? Explain.c) The researchers said the difference was statisticallysignificant. Explain in this context what that means.
Correlation
Correlation defines a relationship between two independent variables. It tells the degree to which variables move in relation to each other. When two sets of data are related to each other, there is a correlation between them.
Linear Correlation
A correlation is used to determine the relationships between numerical and categorical variables. In other words, it is an indicator of how things are connected to one another. The correlation analysis is the study of how variables are related.
Regression Analysis
Regression analysis is a statistical method in which it estimates the relationship between a dependent variable and one or more independent variable. In simple terms dependent variable is called as outcome variable and independent variable is called as predictors. Regression analysis is one of the methods to find the trends in data. The independent variable used in Regression analysis is named Predictor variable. It offers data of an associated dependent variable regarding a particular outcome.
Tips. In restaurants, servers rely on tips as a major
source of income. Does serving candy after the meal
produce larger tips? To find out, two waiters determined
randomly whether or not to give candy to 92 dining
parties. They recorded the sizes of the tips and reported
that guests getting candy tipped an average of 17.8%
of the bill, compared with an average tip of only 15.1%
from those who got no candy. (Source: “Sweetening the
Till: The Use of Candy to Increase Restaurant Tipping.”
Journal of Applied Social Psychology 32, no. 2 [2002]:
300–309)
a) Was this an experiment or an observational study?
Explain.
b) Is it reasonable to conclude that the candy caused
guests to tip more? Explain.
c) The researchers said the difference was statistically
significant. Explain in this context what that means.
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