Question

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 duringthe 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 toprovide 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.

a. Develop a multiple regression equation with the amount of tips as the dependent vari-able and the amount of the bill and the number of diners as independentvariables. Write out the regression equation. How much does another diner add to the amount of the tips? Conduct a global test of hypothesisto determine if at least one of the independent variables is significant. What is your conclusion?

Customer Amount of Tip Bill Diners
1 $ 7.00 $ 48.97 5
2 $ 4.50 $ 28.23 4
3 $ 1.00 $ 10.65 1
4 $ 2.40 $ 19.82 3
5 $ 5.00 $ 28.62 3
6 $ 4.25 $ 24.83 2
7 $ 0.50 $ 6.24 1
8 $ 6.00 $ 49.20 4
9 $ 5.00 $ 43.26 3
10 $ 4.75 $ 31.36 4
11 $ 5.25 $ 32.87 4
12 $ 6.00 $ 34.99 3
13 $ 4.00 $ 33.91 4
14 $ 3.35 $ 23.06 2
15 $ 0.75 $ 4.65 1
16 $ 3.30 $ 23.59 2
17 $ 3.50 $ 22.30 2
18 $ 3.25 $ 32.00 2
19 $ 5.40 $ 50.02 4
20 $ 2.25 $ 17.60 3
21 $ 5.50 $ 44.47 4
22 $ 3.00 $ 20.27 2
23 $ 1.25 $ 19.53 2
24 $ 3.25 $ 27.03 3
25 $ 3.00 $ 21.28 2
26 $ 6.25 $ 43.38 4
27 $ 5.60 $ 28.12 4
28 $ 2.50 $ 26.25 2
29 $ 9.25 $ 56.81 5
30 $ 8.25 $ 50.65 5

Answer 1

Answer 2

 Tip =+Bill +Diners