8 views

Uploaded by JingshanZhang

© All Rights Reserved

- Normality Testing in Excel
- Cola-Game Supply Chain
- Statistics Homework 1 - 8/11
- “a Quality Function Deployment QFD Approach in Determining the Employer’s Selection in KAMCO” 1
- MAKING QUESTION FOR A RESEARCH.pdf
- Adjustment Level of Principals in Realtion to Gender and Locality
- Gatekeeping Strategies for Clinical Trials
- Chapter_08.pdf
- Hypothesis
- ABHIWARTI
- Beginers Guide to Statistics
- Paper SD 18
- Cp & Pp
- T-test
- research paper - phototaxis in zophobas morio
- THE EFFECTS OF MOVIE AND MIND MAPPING ON THE STUDENTS’ WRITING ABILITY OF NARRATIVE TEXT.pdf
- TakingPerplexityoutofPValues
- Handout Academic Writing
- Impact_of_School_Location_on_Academic_Ac.pdf
- Speaker Verification

You are on page 1of 24

Divine Elegance: A Restaurant

Table of Contents

Introduction ........................................................................................................................................... 2

Preliminary Analysis ............................................................................................................................... 2

Data Screening and Hypothesis Testing ................................................................................................... 2

1. How much are potential patrons willing to pay for the entres? Is the $18 amount from the forecasting model

correct? ................................................................................................................................................................................................................. 2

2. Can Michael expect all patrons to spend an average of $200 a month on food? ............................................................... 4

3. Which zip code area(s) provide the best location for the restaurant? Does the expected average monthly

spend differ between potential patrons residing in different zip codes ................................................................................... 6

4. Does the likelihood to patronize the restaurant different between people with different income levels? ........... 8

5.How elegant should the dcor be? Would potential patrons prefer simple or elegant dcor? .................................... 9

6. Should there be live entertainment? Would potential patrons prefer a string quartet or a jazz combo? ........... 10

7. Which radio station(s) should Michael select for advertising? Which type of radio programming do people

most likely to patronize the restaurant listen to? ............................................................................................................................ 10

8. Can the likelihood of patronizing the restaurant be explained in terms of evaluations on restaurant

preference variables (Variables 11-20), age, family size and gender when all of these variables are considered

simultaneously? (*Hint, you may need to recode the Year Born variable to determine age). .................................... 11

9. Does the average age between a probable and non probable patron differ? .................................................................. 13

10. Is there a relationship between gender and whether or not someone is a probable patron? ............................... 14

Conclusion and Recommendation ......................................................................................................... 15

Appendix A ........................................................................................................................................... 17

Categorical ........................................................................................................................................................................................................ 17

Quantitate ......................................................................................................................................................................................................... 24

2

Introduction

Michael Jenkins wants to open his own dream restaurant. Before open his restaurant, he has some

concerns, firstly, he want to know is there demand for an upscale restaurant. Secondly, he wants to know

how to design and what are the operating characteristics. Thirdly, the location of the restaurant will be

recommended. Lastly, the methods to promote the restaurant will be given. In order to give the decision

to Michael, the report will use different statistical methods to explore the data collected from survey and

help Michael to make decisions. After the data analysis, the conclusion and recommendation will be given

to Michael.

Preliminary Analysis

The frequencies for categorical variables and descriptive statistics for variables are shows in appendix A.

According to the frequencies for categorical variables, we find that all the people in the survey went to this

type of restaurant at least once every two week with moderate likelihood to patronlize this restaurant. In

the radio section, almost all the customers listen to the radio and rock music are they favorite. In the TV

section, the customers like 10:00 pm news. Also they like local news section in the newspaper. For the

operating characteristics, they somewhat prefer the waterfront, like simple dcor, prefer the restaurant

not too fat from home. And not prefer large variety of Entrees and unusual entrees. In the consumers

characteristics section, Almost 60% customers have bachelors degree and more than half are married with

income range from $50,000 to $74,999.

The preliminary analysis give the general idea from the customers, however, the deeper statistical test

need to conduct in order to get the deeper understanding with the customers.

Data Screening and Hypothesis Testing

1. How much are potential patrons willing to pay for the entres? Is the $18 amount from the

forecasting model correct?

The data present very well in this question, we assume that the populations are normally distributed.

1. State the null and alternate hypotheses

H

0

:

H

a

:

3

2. Choose an appropriate statistical technique to test the hypothesis

One sample t-test is used to test the hypothesis because the variable is independent and the one sample t-

test compares the mean score of a sample to a known value.

3. Provide a summary of the nature (characteristics) of the test selected

Reject null hypothesis is p value less than 0.05.

4. Perform the appropriate test using SPSS

5. Report the results (including test statistic and p-value)

The t value is 1.567 and the p-value is 0.118

6. Include appropriate graphical representation of the results (if appropriate)

4

7. Provide a suitable description for the graphical output

The distribution is skewed to the right. The average amount of patrons willing to pay is $18.8353.

8. Provide a statistical interpretation

P value is 0.118 is greater than the critical value of 0.05. Do not reject null hypothesis. There is sufficient

evidence to shows that the potential patron willing to pay for the entrees is $18.

9. Provide a non-statistical interpretation (in laymans terms)

The potential patrons willing to pay $18 for the entre, the best price strategy for entre should be greater

than $18.

2. Can Michael expect all patrons to spend an average of $200 a month on food?

The data present very well in this question, we assume that the populations are normally distributed.

1. State the null and alternate hypotheses

5

H

0

:

H

a

:

2. Choose an appropriate statistical technique to test the hypothesis

One sample t-test is used to test the hypothesis because the variable is independent and the one sample t-

test compares the mean score of a sample to a known value.

3. Provide a summary of the nature (characteristics) of the test selected

Reject null hypothesis is p value less than 0.05.

4. Perform the appropriate test using SPSS

5. Report the results (including test statistic and p-value)

The t value is -10.775 and the p-value is 0.000

6. Include appropriate graphical representation of the results (if appropriate)

7. Provide a suitable description for the graphical output

6

The distribution is skewed to the right. The average amount spend per month in restaurants is $150.05

8. Provide a statistical interpretation

P value is 0.000 is less than the critical value of 0.05. Reject null hypothesis. There is insufficient evidence

to shows that all patrons to spend an average of $200 a month on food.

9. Provide a non-statistical interpretation (in laymans terms)

The potential patrons spend on average is not equal to $200, may be less than $200. Michael should do a

marketing research, is this area suitable for the upper class restaurant.

3. Which zip code area(s) provide the best location for the restaurant? Does the expected

average monthly spend differ between potential patrons residing in different zip codes

The data present very well in this question, we assume that the populations are normally distributed.

1. State the null and alternate hypotheses

H

0

:

H

a

: at least one mean is significantly different

2. Choose an appropriate statistical technique to test the hypothesis

One way ANOVA method is chosen because its data is more than two independence means.

3. Provide a summary of the nature (characteristics) of the test selected

Reject null hypothesis is p value less than 0.05.

4. Perform the appropriate test using SPSS

7

5. Report the results (including test statistic and p-value)

The F value is 313.333 and the p-value is 0.000

6. Include appropriate graphical representation of the results (if appropriate)

7. Provide a suitable description for the graphical output

As can be seen in the graph, the people live in postcode B spend higher than the other postcode area.

8. Provide a statistical interpretation

P value is 0.000 is less than the critical value of 0.05. Reject null hypothesis. There is sufficient evidence to

shows that at least one mean is significantly different.

9. Provide a non-statistical interpretation (in laymans terms)

8

General speaking, the people live in postcode B spend higher than the other postcode area. Michael can

locate his restaurant in this area.

4. Does the likelihood to patronize the restaurant different between people with different

income levels?

1. State the null and alternate hypotheses

H

0

:

H

a

: at least one mean is significantly different

2. Choose an appropriate statistical technique to test the hypothesis

One way ANOVA method is chosen because its data is more than two independence means.

3. Provide a summary of the nature (characteristics) of the test selected

Reject null hypothesis is p value less than 0.05.

4. Perform the appropriate test using SPSS

5. Report the results (including test statistic and p-value)

The F value is 188.28 and the p-value is 0.000

6. Provide a statistical interpretation

P value is 0.000 is less than the critical value of 0.05. Reject null hypothesis. There is sufficient evidence to

shows that at least one mean is significantly different.

7. Provide a non-statistical interpretation (in laymans terms)

General speaking, the likelihood to patronize the restaurant increase as the peoples income levels

increases.

9

5.How elegant should the dcor be? Would potential patrons prefer simple or elegant dcor?

From the histogram, we can know that the people prefer simple dcor more than elegant dcor. A SPSS

analysis as following.

1. State the null and alternate hypotheses

H

0

: the level of preference over simple style = the level of preference over elegant style

H

a

: the level of preference over simple style the level of preference over elegant style

2. Choose an appropriate statistical technique to test the hypothesis

Paired test

3. Provide a summary of the nature (characteristics) of the test selected

Reject null hypothesis is p value less than 0.05.

4. Perform the appropriate test using SPSS

5. Report the results (including test statistic and p-value)

The t value is 8.564 and the p-value is 0.000

6. Provide a statistical interpretation

10

P value is 0.000 is less than the critical value of 0.05. Reject null hypothesis. There is sufficient evidence to

shows that the level of preference over simple dcor is not the same as the level of preference over

elegant dcor.

7. Provide a non-statistical interpretation (in laymans terms)

The people prefer simple dcor more than elegant dcor, Michael can use this information to set up the

new restaurant.

6. Should there be live entertainment? Would potential patrons prefer a string quartet or a jazz

combo?

1. State the null and alternate hypotheses

H

0

: the level of preference over String Quartet is equal to the level of preference over Jazz Combo

H

a

: the level of preference over String Quartet is not equal the level of preference over Jazz Combo

2. Choose an appropriate statistical technique to test the hypothesis

Paired test

3. Provide a summary of the nature (characteristics) of the test selected

Reject null hypothesis is p value less than 0.05.

4. Perform the appropriate test using SPSS

5. Report the results (including test statistic and p-value)

The t value is -10.30 and the p-value is 0.000

6. Provide a statistical interpretation

P value is 0.000 is less than the critical value of 0.05. Reject null hypothesis. There is sufficient evidence to

shows that the level of preference over String Quartet is not equal the level of preference over Jazz

Combo.

7. Provide a non-statistical interpretation (in laymans terms)

There is a difference in likelihood between the string quartet and the jazz combo. The live entertainment

should choose the jazz combo for the restaurant.

7. Which radio station(s) should Michael select for advertising? Which type of radio

programming do people most likely to patronize the restaurant listen to?

1. State the null and alternate hypotheses

11

H

0

: Average likelihood in Country &Western = Easy Listening = Talk or News = Rock

H

a

: At least type of the likelihood is significantly different

2. Choose an appropriate statistical technique to test the hypothesis

ANOVA

3. Provide a summary of the nature (characteristics) of the test selected

Reject null hypothesis is p value less than 0.05.

4. Perform the appropriate test using SPSS

5. Report the results (including test statistic and p-value)

The F value is 131.581 and the p-value is 0.000

6. Provide a statistical interpretation

P value is 0.000 is less than the critical value of 0.05. Reject null hypothesis. There is sufficient evidence to

shows that there are significant differences between Country &Western, Easy Listening, Talk or News and

Rock. In addition, the mean for the Easy listening is the highest.

7. Provide a non-statistical interpretation (in laymans terms)

Easy listening radio station should Michael select for advertising. This also the type of radio programming

do people most likely to patronize the restaurant listen to.

8. Can the likelihood of patronizing the restaurant be explained in terms of evaluations on

restaurant preference variables (Variables 11-20), age, family size and gender when all of

these variables are considered simultaneously? (*Hint, you may need to recode the Year Born

variable to determine age).

1. State the null and alternate hypotheses

H

0

: All the coefficients are the same

H

a

: At least one coefficient is not the same

2. Choose an appropriate statistical technique to test the hypothesis

12

Regression

3. Provide a summary of the nature (characteristics) of the test selected

Reject null hypothesis is p value less than 0.05.

4. Perform the appropriate test using SPSS

13

5. Report the results (including test statistic and p-value)

The F value is 59.427 and the p-value is 0.000

6. Provide a statistical interpretation

P value is 0.000 is less than the critical value of 0.05. Reject null hypothesis. There is sufficient evidence to

shows that there are significant differences between coefficients. Also, the coefficients for each variable,

we can find that in the regression model. For example, the coefficient for slope is 1.396, the coefficient for

prefer waterfront view is 0.189.

7. Provide a non-statistical interpretation (in laymans terms)

Michael can use the regression model to predict the likelihood of patronizing the restaurant. The data fit

the model very well.

9. Does the average age between a probable and non probable patron differ?

1. State the null and alternate hypotheses

H

0

: Average age of probable patron = Average age of non probable patron

H

a

: Average age of probable patron Average age of non probable patron

2. Choose an appropriate statistical technique to test the hypothesis

Independent t test

3. Provide a summary of the nature (characteristics) of the test selected

Reject null hypothesis is p value less than 0.05.

4. Perform the appropriate test using SPSS

14

5. Report the results (including test statistic and p-value)

The t value is 11.414 and the p-value is 0.000

6. Provide a statistical interpretation

P value is 0.000 is less than the critical value of 0.05. Reject null hypothesis. There is sufficient evidence to

shows that the average age between a probable and non probable patron differ.

7. Provide a non-statistical interpretation (in laymans terms)

There is difference between probably and no probably Patrons in average ages, therefore, Michael should

consider for the age group.

10. Is there a relationship between gender and whether or not someone is a probable patron?

1. State the null and alternate hypotheses

H

0

: there is no relationship between gender and probable patron

H

1

: there is a relationship between gender and probable patron

2. Choose an appropriate statistical technique to test the hypothesis

Chi square test

3. Provide a summary of the nature (characteristics) of the test selected

Reject null hypothesis is p value less than 0.05.

4. Perform the appropriate test using SPSS

15

5. Report the results (including test statistic and p-value)

The chi-square value is 0.285 and p-value is 0.593 in the chi-square test

6. Provide a statistical interpretation

P value is 0.593 is higher than the critical value of 0.05. Do no reject null hypothesis. There is insufficient

evidence to shows that there is a relationship between gender and whether or not someone is a probable

patron

7. Provide a non-statistical interpretation (in laymans terms)

There is no relationship between gender, therefore, Michael do not need to consider about the gender in

order to patron of the new restaurant.

Conclusion and Recommendation

From the data analysis, the main aim is to help Michael make a decision for the new restaurant, there

are some recommendations, firstly of all, the price for the entre should be around $18 along with the

16

patrons spend less than $200 monthly for the meal. The best location for the restaurant is the Post

code area B, Michael should use simple dcor for the new restaurant, and Jazz band for the live music

should be considered. Further, the patrons like easy listening music, Michael should consider to select

this for advertising in the radio. Lastly, the average age between a probable and non-probable patron

are differ but there is no relationship between genders.

Overall, the data analysis is useful for make decision and the output is useful for Michael. Based on the

recommendation, Michael will succeed and realise his dream.

17

Appendix A

Categorical

18

19

20

21

22

23

24

Quantitate

- Normality Testing in ExcelUploaded byAlina Constantin
- Cola-Game Supply ChainUploaded byJackie Baughman
- Statistics Homework 1 - 8/11Uploaded byGerome Sunga
- “a Quality Function Deployment QFD Approach in Determining the Employer’s Selection in KAMCO” 1Uploaded byInternational Journal of Innovative Science and Research Technology
- MAKING QUESTION FOR A RESEARCH.pdfUploaded byMAVICTORIADAVID
- Adjustment Level of Principals in Realtion to Gender and LocalityUploaded byAlexander Decker
- Gatekeeping Strategies for Clinical TrialsUploaded bySebastian Antonelli
- Chapter_08.pdfUploaded byHazwan
- HypothesisUploaded byprabhubalajibinx000
- ABHIWARTIUploaded byGuman Singh
- Beginers Guide to StatisticsUploaded bySreejit Menon
- Paper SD 18Uploaded byManoj Agravat
- Cp & PpUploaded bydvprajapati454539334
- T-testUploaded byRohit Pandey
- research paper - phototaxis in zophobas morioUploaded byapi-393048315
- THE EFFECTS OF MOVIE AND MIND MAPPING ON THE STUDENTS’ WRITING ABILITY OF NARRATIVE TEXT.pdfUploaded byilham
- TakingPerplexityoutofPValuesUploaded byrohitas83
- Handout Academic WritingUploaded byAndreea Iuliana
- Impact_of_School_Location_on_Academic_Ac.pdfUploaded byMorrison Omokiniovo Jessa Snr
- Speaker VerificationUploaded bycasesilva
- Mas 1Uploaded bywalczakc
- Paired Sample T.docxUploaded bysirfrenz7204
- Making Statistical Methods More Useful.sage Open-2013-WoodUploaded byLeopoldo Artiles
- Week 8 AnnotatedUploaded byBob
- Lecture 7.Descriptive and Inferential StatisticsUploaded byKhurram Sheraz
- Biostat-Handouts-Lesson-9.pdfUploaded byheyyymeee
- RESEARCH Part 4 -Concepts (33)Uploaded byAbdullah Bin Ghazali
- stats takehomeUploaded byapi-384078451
- SHORTWENED.docxUploaded byLeurmae Felizarte
- Advertisement (2)Uploaded byRathnaDevin

- Chap 011Uploaded byBG Monty 1
- Ch10-4pageUploaded byAshish Gupta
- mkm042Uploaded byYacine Tarik Aizel
- 4-TEST OF HYPOTHESIS.pdfUploaded bySantosh Thapa
- An Investigation of the False Discovery Rate and the Misinterpretation of P-ValuesUploaded byAnonymous PKVCsG
- Statistical TableUploaded byPeter Andrew G. Regencia
- QuantumXLExample.xlsxUploaded bysankar22
- statistikUploaded byReskiwati Salam
- Hypothesis Testing ProcedureUploaded byNikita Mehta Desai
- Practice an OvaUploaded byHassan Khan
- MODULE 15 Hypothesis TestingUploaded byEza Hasnan
- Comparing the Sample Mean and the Population Mean in a Large Sample SizeUploaded byJealyn Flores
- Topic 8 Chi-Square & Hypothesis TestUploaded byHatsune Miku
- Hypothesis pptUploaded bysrikant
- Hypothesis testingUploaded byPinkk Daisyfield
- Null hypothesis significance testingUploaded byMarija Vranjanac
- AnovaUploaded byZainab Abizer Merchant
- Pearsonian Chi-square TestUploaded byPranshu Batra
- Significance of P-Value, Box-Whisker Plots in Statistical Testing 260811Uploaded byrskchess
- Homework #11 Chapter 11Uploaded byBobby Nguyen
- 21537sm Finalnew Vol2 Cp18Uploaded bySmu Sovabazar
- Statistical ToolsUploaded byNeil Isaac Perez
- A Monte Carlo Study of Two NonparametricUploaded byIsmael Neu
- Quade TestUploaded bySiti Robi'ah Nurhafsari
- Absorbtion of WHP_Final of the FINALUploaded byKristiane Reyes de Villa
- stat.docxUploaded bycrisjava
- Hypothesis Testing UploadUploaded bykaskarait
- Stat InferenceUploaded byPradeepa Arunachalam
- Test of HypothesisUploaded byJaspreet Kaur
- Power CalculationsUploaded byUproott