The Consumer Reports Restaurant Customer Satisfaction Survey is based upon 148,599 visits to full-service restaurant chains (Consumer Reports website, February 11, 2009). Assume the following data are representative of the results reported. The variable type indicates whether the restaurant is an Italian restaurant or a seafood/steakhouse. Price indicates the average amount paid per person for dinner and drinks, minus the tip. Score reflects diners’ overall satisfaction, with higher values indicating greater overall satisfaction. A score of 80 can be interpreted as very satisfied.
a) Develop the estimated regression equation to show how overall customer satisfaction is related to the independent variable average meal price.
b. At the .05 level of significance, test whether the estimated regression equation developed in part (a) indicates a significant relationship between overall customer satisfaction and average meal price.
c. Develop a dummy variable that will account for the type of restaurant (Italian or seafood/steakhouse).
d. Develop the estimated regression equation to show how overall customer satisfaction is related to the average meal price and the type of restaurant.
e. Is type of restaurant a significant factor in overall customer satisfaction?
f. Predict the Consumer Reports customer satisfaction score for a seafood/steakhouse that has an average meal price of $20. how much would the predicted score have changed for an Italian restaurant?
Restaurant Type Price ($) Score
Bertucci's Italian 16 77
Black Angus Steakhouse Seafood/Steakhouse 24 79
Bonefish Grill Seafood/Steakhouse 26 85
Bravo! Cucina Italiana Italian 18 84
Buca di Beppo Italian 17 81
Bugaboo Creek Steak House Seafood/Steakhouse 18 77
Carrabba's Italian Grill Italian 23 86
CharlieBrown's Steakhouse Seafood/Steakhouse 17 75
Il Fornaio Italian 28 83
Joe's Crab Shack Seafood/Steakhouse 15 71
Johnny Carino's Italian Italian 17 81
Lone Star Steakhouse & saloon Seafood/Steakhouse 17 76
LongHorn Steakhouse Seafood/Steakhouse 19 81
Maggiano's Little Italy Italian 22 83
McGrath's Fish House Seafood/Steakhouse 16 81
Olive Garden Italian 19 81
Outback Steakhouse Seafood/Steakhouse 20 80
Red Lobster Seafood/Steakhouse 18 78
Romano's Macaroni Grill Italian 18 82
The Old Spaghetti Factory Italian 12 79
Uno Chicago Grill Italian 16 76
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