Question

Study 2: Scott’s Spaghetti
Scott recently opened a new restaurant in the city, ‘Scott’s Spaghetti’. Scott has been in the food industry for a while and was able to ask his friends for some data on their current restaurants. He collected data on website hits and weekly revenue to decide if creating a website was worth his time.

Your task is to answer the following questions:

1. What sampling technique did Scott use?

2. Which variable is independent? Which variable is dependent?

3. Why would Scott have chosen to use simple linear regression to address his question?

4. Before you create a scatter plot or calculate slope what do you suspect that you will find?

5. Create a scatter plot of the data. Does this confirm your suspicions from question 4?

6. What is the correlation coefficient, r. What does this tell us? Does it confirm or contradict your preconceived ideas (before making the scatter plot), and the scatter plot?

7. Scott decided not to fit a linear regression to his data set. Why?

	Restaurant Revenue and Website Hits (n = 10 restaurants)
Restaurant	Web Hits	Revenue
John's Café	1213	$12,113
Buccan	1490	11,409
New City Diner	1365	14,579
Black Pearl	1455	11,605
Saratoga	1269	12,308
Burnt Toast	1632	12,320
University Seat	1323	13,225
Jimmy's	1865	13,652
Marron and Orange	1590	13,893
Burger Palace	1878	13,896
				Note: Data are for one week.

Answer 1