Chapter 15.7, Problem 37E

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.

1. a. Develop the estimated regression equation to show how overall customer satisfaction is related to the independent variable average meal price.
2. 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.
3. c. Develop a dummy variable that will account for the type of restaurant (Italian or sea- food/steakhouse).
4. d. Develop the estimated regression equation to show how overall customer satisfaction is related to the average meal price and the type of restaurant.
5. e. Is type of restaurant a significant factor in overall customer satisfaction?
6. 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?