Question

• TIPAMT – Tip Amount (coded as 1, 2, 3, 4, or 5) where 1 = <10%; 2 = 10-12%; 3 = 12-14%; 4 = 15-16%; 5 = >18%.
  (TIPAMT was directly measured from customers’ payments for the checks).
• MLTSRV – Multiple Servers in Attendance (0=No; 1=Yes).
  (For customers on Tuesday, this variable was coded as 1. For customers on Wednesday, this variable was coded as 0).
• #PRTY - # of Individuals in the Party.
  (The primary server noted the number of individuals on the meal check).
• #EYECNT - # of Eye Contacts made with any one individual in the party.

(This variable was harder to measure because on Tuesday multiple servers could have made eye-contact. It was the primary servers responsibility to check with the other servers how many times they looked into any one customer’s eyes in the party. The primary server then noted that number on the meal check).

• MFPAY – Male or Female Making the Payment (1 = Male; 2 = Female).
  (Again it was the primary server’s responsibility to note the gender of the individual making the payment).
• #TRPS - # of Trips in the last Month to BurgerHut by the person making the payment.

1. You used the statistical programs to calculate the correlation between #EYECNT and #PRTY and it was 0.44. Was this a check that would have been useful?

Select one:

a. Yes, this is a good diagnostic check to make. If the correlation between these two is not high, you would have to wonder why

b. No, there wasn’t much point checking this correlation

2. You conducted a regression analysis with TIPAMT as the dependent variable and #EYECNT as the independent variable. The R2 is .53, the coefficient associated with #EYECNT is .43 and its t-statistic is 12.84. You then conducted a regression with all the independent variables in the equation. The coefficients and t-stats are as follows: #PRTY (.23; 2.58) #EYECNT (.25; 5.445); #TRPS (.01; .12); MLTSRV (.98; 4.01); MFPAY (-.08; -.38). Which of the statements are true

Select one:

a. #TRPS, #EYECNT, MLTSRV in the multiple regression are significant

b. It is strange the #EYECNT has dropped from .43 to .25

c. It is not strange that MFPAY can be insignificant in a multiple regression setting and significant in the bivariate setting

d. You can confidently say that the idea to be customer-friendly by attentive service is a good one in this context.

e. a, c, and d

Answer 1

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