Question

Consider the following data sample from the Consumer Report on Restaurant Satisfaction. The variable TYPE indicates whether the restaurant is Italian or Seafood/steakhouse. The variable PRICE indicates average amount paid per person for dinner and drinks (in dollars). The variable SCORE reflects overall customer satisfaction, with a value of 100 indicating completely satisfied.  A regression analysis is conducted in several steps to find out whether type of restaurant and price explains Score (customer’ satisfaction).

Restaurant	Price ($)	Score	Type of restaurant
Bertucci's	16	77	Italian
Black Angus	24	79	Seafood/Steak
Bonefish Grill	26	85	Seafood/Steak
Bravo!cuccina italiana	18	84	Italian
Buca di Beppo	17	81	Italian
Bugaboo Steak House	18	77	Seafood/Steak
Carrabba's Italian grill	23	86	Italian
Brown's Steakhouse	17	75	Seafood/Steak
Il Fornaio	28	83	Italian
Joe's crab Shack	15	71	Seafood/Steak
Johnny Carino's Italian	17	81	Italian
Lone Star SteakHouse	17	76	Seafood/Steak
Longhorn steakhouse	19	81	Seafood/Steak
Maggio's little Italy	22	83	Italian
McGrath's Fish House	16	81	Seafood/Steak
Oliven Graden	19	81	Italian
Outback Steakhouse	20	80	Seafood/Steak
Red Lobster	18	78	Seafood/Steak
Romano's macorroni grill	18	82	Italian
The old spaguetti factory	12	79	Italian
Uno Chicago Grill	16	76	Italian

6. Report the statistical significance of the coefficients for MODEL 2?

MODEL 2 - Coefficientsa
Model		Unstandardized Coefficients		Standardized Coefficients	t	Sig.
		B	Std. Error	Beta
1	(Constant)	67.405	3.053		22.075	.000
	Price	.573	.155	.602	3.710	.012
	DType	3.038	1.155	.427	2.630	.057
a. Dependent Variable: Score

7. How important you think the variable DTYPE is in explaining SCORE?

Answer 1

(6) Statistical significance of the coefficients for MODEL 2

Variable Price has a p value of 0.012. This value is less than 0.05 significance level, so the variable Price is statistically significant.

Variable Dtype has a p value of 0.057. This value is more than 0.05 significance level, so the variable Dtype is not statistically significant.

(7) We can see that the variable Dtype has a p value of 0.057. This shows that the p value is more than 0.05 significance level, so the variable Dtype is not statistically significant.

Therefore, we can say that the variable DTYPE is not important in explaining SCORE as it is not significant.