Question

Describe how you could use a confidence interval to analyze a portion a dataset in a way that would help the owner of the restaurant better understand his customers. Be sure to use proper statistical terminology. You do not have to actually calculate the confidence interval

Answer 1

This would totally depend on the type of variables we have in the data set.

If we have a continuous variable say “Minutes a Customer spends on the table” then we can calculate a 95% confidence for the mean of Minutes customers spend on the table, this will help the owner to understand the average timing a customer spends in his restaurant, therefore, he can use this information to determine the number of tables he should have at the peak time.

If we have a discrete variable say “Number of customers who likes a particular dish” then we can calculate a 95% confidence for the proportion of customers who likes that particular dish, this will help restaurant owner to understand how many dishes of that particular should be cooked.