The Conch Café, located in Gulf Shores, Alabama, features casuallunches with a great view of the Gulf of Mexico. To accommodate theincrease in business during the summer vacation season, FuzzyConch, the owner, hires a large number of servers as seasonal help.When he interviews a prospective server, he would like to providedata on the amount a server can earn in tips. He believes that theamount of the bill and the number of diners are both related to theamount of the tip. He gathered the following sampleinformation.
CustomerAmount of TipAmount of BillNumber ofDinersCustomerAmount of TipAmount of BillNumber of Diners
Customer | Amount of Tip ($) | Amount of Bill ($) | Diners |
1 | 5.15 | 74.5 | 2 |
2 | 4.5 | 28.23 | 4 |
3 | 1 | 10.65 | 1 |
4 | 2.4 | 19.82 | 3 |
5 | 5 | 28.62 | 3 |
6 | 4.25 | 24.83 | 2 |
7 | 0.5 | 6.25 | 1 |
8 | 6 | 49.2 | 4 |
9 | 5 | 43.26 | 3 |
10 | 4.65 | 62.23 | 1 |
11 | 5.6 | 84.81 | 1 |
12 | 6 | 34.99 | 3 |
13 | 4 | 33.91 | 4 |
14 | 3.35 | 23.06 | 2 |
15 | 0.75 | 4.65 | 1 |
16 | 3.3 | 23.59 | 2 |
17 | 3.5 | 22.3 | 2 |
18 | 3.25 | 32 | 2 |
19 | 5.4 | 50.02 | 4 |
20 | 2.25 | 17.6 | 3 |
21 | 4.35 | 63.16 | 6 |
22 | 3 | 20.27 | 2 |
23 | 1.25 | 19.53 | 2 |
24 | 3.25 | 27.03 | 3 |
25 | 3 | 21.28 | 2 |
26 | 6.25 | 43.38 | 4 |
27 | 5.6 | 28.12 | 4 |
28 | 2.5 | 26.25 | 2 |
29 | 6.85 | 53.08 | 7 |
30 | 8.6 | 87.85 | 8 |
Click here for the Excel Data File
a-1. Develop a multiple regression equation with the amount oftips as the dependent variable and the amount of the bill and thenumber of diners as independent variables and complete the table.(Negative amounts should be indicated by a minus sign. Round youranswers to 3 decimal places.)
Predictor | Coefficient | SE Coefficient | t | p-value |
Constant | | | | |
Bill | | | | |
Diners | | | | |
a-2. Write out the regression equation. (Negative amounts shouldbe indicated by a minus sign. Round your answers to 3 decimalplaces.)
| Tip= ____ + ____ Bill + _____ Diners |
a-3. How much does another diner add to the amount of the tips?(Round your answer to 2 decimal places.)
b. According to the p-values, which variable should be deletedif alpha = 0.05?