STATISTICAL TECHNIQUES-ACCESS ONLY
16th Edition
ISBN: 9780077639648
Author: Lind
Publisher: MCG
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Chapter 14, Problem 28CE
a.
To determine
Find the regression equation.
Explain the change of amount of tip for another dinner.
b.
To determine
Perform a global test to find whether at least one of the independent variables is significant.
Draw the conclusions.
c.
To determine
Perform individual test for each of the variables.
Explain one or the other can be deleted.
d.
To determine
Find the coefficient of determination and interpret the value.
e.
To determine
Plot the residuals in a histogram.
Also explain whether it is reasonable that the residuals follow normal assumptions.
f.
To determine
Plot the residuals against the fitted values.
Explain whether it is reasonable to conclude that they are random.
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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.
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Amount of Tip
Amount of Bill
Number of Diners
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Amount of Tip
Amount of Bill
Number of Diners
1
$
7.00
$
48.97
5
16
$
3.30
$
23.59
2
2
4.50
28.23
4
17
3.50
22.30
2
3
1.00
10.65
1
18
3.25
32.00
2
4
2.40
19.82
3
19
5.40
50.02
4
5
5.00
28.62
3
20
2.25
17.60
3
6
4.25
24.83
2
21
5.50
44.47
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0.50
6.24
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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.
Customer
Amount of Tip
Amount of Bill
Number of Diners
Customer
Amount of Tip
Amount of Bill
Number of Diners
1
$
6.05
$
73.22
1
16
$
3.30
$
23.59
2
2
4.50
28.23
4
17
3.50
22.30
2
3
1.00
10.65
1
18
3.25
32.00
2
4
2.40
19.82
3
19
5.40
50.02
4
5
5.00
28.62
3
20
2.25
17.60
3
6
4.25
24.83
2
21
1.40
41.80
5
7
.50
6.25
1
22
3.00
20.27
2…
A researcher believed that the number of rental cars in service by a car rental company would have an impact on the total annual revenue for that car rental company. Five small car rental companies were surveyed, with the number of Cars in service recorded in units of 1000 (so if a car rental company had 54000 cars in service, a 54 would be recorded) and Annual Revenue measured in millions of dollars (so an Annual Revenue of $10,000,000 would be recorded as 10). The data follows:
Cars (1,000s) Annual Revenue ($ millions)11.5 118
10.0 135
9.0 100
5.5 37
3.3 32
Part of the Excel-generated Simple Linear Regression output is provided below:
ANOVA
df
SS
MS
F
Significance F
Regression
1
7891.863897
7891.863897
22.91180151
0.017339231
Residual
3
1033.336103
344.4453677
Total
4
8925.2
Coefficients
Standard Error
t Stat
P-value
Intercept
-19.12490108
23.1658578…
Chapter 14 Solutions
STATISTICAL TECHNIQUES-ACCESS ONLY
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Ch. 14 - The following regression output was obtained from...Ch. 14 - A study by the American Realtors Association...Ch. 14 - The manager of High Point Sofa and Chair, a large...Ch. 14 - Prob. 10ECh. 14 - Prob. 11ECh. 14 - A real estate developer wishes to study the...Ch. 14 - Prob. 13CECh. 14 - Prob. 14CECh. 14 - Prob. 15CECh. 14 - Prob. 16CECh. 14 - The district manager of Jasons, a large discount...Ch. 14 - Suppose that the sales manager of a large...Ch. 14 - The administrator of a new paralegal program at...Ch. 14 - Prob. 20CECh. 14 - Prob. 21CECh. 14 - A regional planner is studying the demographics of...Ch. 14 - Great Plains Distributors, Inc. sells roofing and...Ch. 14 - Prob. 24CECh. 14 - Prob. 25CECh. 14 - Prob. 26CECh. 14 - An investment advisor is studying the relationship...Ch. 14 - Prob. 28CECh. 14 - Prob. 29CECh. 14 - The director of special events for Sun City...Ch. 14 - Prob. 31CECh. 14 - Prob. 32CECh. 14 - Refer to the Real Estate data, which report...Ch. 14 - Prob. 34DECh. 14 - Refer to the Buena School District bus data....Ch. 14 - Prob. 1PCh. 14 - Quick-print firms in a large downtown business...Ch. 14 - The following ANOVA output is given. a. Compute...Ch. 14 - Prob. 1CCh. 14 - Prob. 2CCh. 14 - Prob. 3CCh. 14 - In a scatter diagram, the dependent variable is...Ch. 14 - What level of measurement is required to compute...Ch. 14 - If there is no correlation between two variables,...Ch. 14 - Which of the following values indicates the...Ch. 14 - Under what conditions will the coefficient of...Ch. 14 - Given the following regression equation, = 7 ...Ch. 14 - Given the following regression equation, = 7 ...Ch. 14 - Given the following regression equation, = 7 ...Ch. 14 - Prob. 1.9PTCh. 14 - In a multiple regression equation, what is the...Ch. 14 - Prob. 1.11PTCh. 14 - Prob. 1.12PTCh. 14 - For a dummy variable, such as gender, how many...Ch. 14 - What is the term given to a table that shows all...Ch. 14 - If there is a linear relationship between the...Ch. 14 - Given the following regression analysis output: a....Ch. 14 - Given the following regression analysis output. a....
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