The Conch Café, located in Gulf Shores, Alabama, features casual lunches with a great view of the Gulf of Mexico. To acc
Posted: Wed May 11, 2022 11:23 am
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. Right- or two-finger-click (do not single-click!) the link and choose Save Link as or Save File as to Download the data, run the regression at 5% significance, and check the appropriate boxes. Diners is significant There is around 49% explained variation Amount of Bill is significant The correlation is 0.7276 The model is not significant There is a categorical variable Each diner on average adds $0.3 to the tip. The model is significant There is around 73% explained variation