Data analysis report
Divine Elegance: A Restaurant
Table of Contents
Preliminary Analysis 2
Data Screening and Hypothesis Testing 2
1. How much are potential patrons willing to pay for the entrées? Is the $18 amount from the forecasting model correct? 2
2. Can Michael expect all patrons to spend an average of $200 a month on food? 4
3. Which zip code area(s) provide the best location for the restaurant? Does the expected average monthly spend differ between potential patrons residing in different zip codes 6
4. Does the likelihood to patronize the restaurant different between people with different income levels? 8
5.How elegant should the décor be? Would ...view middle of the document...
Lastly, the methods to promote the restaurant will be given. In order to give the decision to Michael, the report will use different statistical methods to explore the data collected from survey and help Michael to make decisions. After the data analysis, the conclusion and recommendation will be given to Michael.
The frequencies for categorical variables and descriptive statistics for variables are shows in appendix A.
According to the frequencies for categorical variables, we find that all the people in the survey went to this type of restaurant at least once every two week with moderate likelihood to patronlize this restaurant. In the radio section, almost all the customers listen to the radio and rock music are they favorite. In the TV section, the customers like 10:00 pm news. Also they like local news section in the newspaper. For the operating characteristics, they somewhat prefer the waterfront, like simple décor, prefer the restaurant not too fat from home. And not prefer large variety of Entrees and unusual entrees. In the consumers’ characteristics section, Almost 60% customers have bachelor’s degree and more than half are married with income range from $50,000 to $74,999.
The preliminary analysis give the general idea from the customers, however, the deeper statistical test need to conduct in order to get the deeper understanding with the customers.
Data Screening and Hypothesis Testing
1. How much are potential patrons willing to pay for the entrées? Is the $18 amount from the forecasting model correct?
The data present very well in this question, we assume that the populations are normally distributed.
1. State the null and alternate hypotheses
2. Choose an appropriate statistical technique to test the hypothesis
One sample t-test is used to test the hypothesis because the variable is independent and the one sample t-test compares the mean score of a sample to a known value.
3. Provide a summary of the nature (characteristics) of the test selected
Reject null hypothesis is p value less than 0.05.
4. Perform the appropriate test using SPSS
5. Report the results (including test statistic and p-value)
The t value is 1.567 and the p-value is 0.118
6. Include appropriate graphical representation of the results (if appropriate)
7. Provide a suitable description for the graphical output
The distribution is skewed to the right. The average amount of patrons willing to pay is $18.8353.
8. Provide a statistical interpretation
P value is 0.118 is greater than the critical value of 0.05. Do not reject null hypothesis. There is sufficient evidence to shows that the potential patron willing to pay for the entrees is $18.
9. Provide a non-statistical interpretation (in layman’s terms)
The potential patrons willing to pay $18 for the entrée, the best price strategy for entrée should be greater than $18.
2. Can Michael expect all patrons to spend an...