Business students want to predict the average customer tip from an average custo
ID: 3228959 • Letter: B
Question
Business students want to predict the average customer tip from an average customer’s restaurant bill. They have collected data from five customers. The regression results are listed below:
Regression Statistics
Multiple R
0.982662743
R Square
0.965626066
Adjusted R Square
0.954168088
Standard Error
1.126347416
Observations
5
ANOVA
df
SS
MS
F
Significance F
Regression
1
106.916744
106.91674
84.27543
0.002733202
Residual
3
3.8059755
1.2686585
Total
4
110.72272
Coefficients
Standard Error
t Stat
P-value
Intercept
-0.736738659
1.36158355
-0.54109
0.626041
Bill
0.164058808
0.01787101
9.1801652
0.002733
a) the point estimate of the slope is ________.
b) The value of the standard error of the estimate is _____________.
c) The value of the coefficient of determination is _____________.
d) Test the model to see if it is valid. What are the null and alternative hypotheses? Is the model valid?
e) What tip would you predict for a $100 restaurant bill?
Regression Statistics
Multiple R
0.982662743
R Square
0.965626066
Adjusted R Square
0.954168088
Standard Error
1.126347416
Observations
5
Explanation / Answer
a ) 0.164
b) 0.01787
c) coefficeint of determnation = R^2 =0.9656
d ) this model is good , because R ^2 is close to zero , all the data points are fittinf exactly into stright line.
e ) y = 0.167*100-0.73 = 16.27
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