Consider the following data sample from the Consumer Report Restaurant Satisfact
ID: 3359336 • Letter: C
Question
Consider the following data sample from the Consumer Report Restaurant Satisfaction Survey. 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. The variable SCORE reflects diner's overall customer satisfaction, with higher values indicating greater satisfaction (100 is completely satisfied). A regression analysis is conducted in several steps to gauge the impact of the explanatory variables on SCORE (customer' satisfaction). Score Type of restaurant Restaurant Bertucci's 77 Italian 79 Seafood/Steak 85 Seafood/Steak 84 Italian 81 Italian 77 Seafood/Steak 86 Italian 75 Seafood/Steak 83 Italian 71 Seafood/Steak 81 Italian 76 Seafood/Steak 81 Seafood/Steak 83 Italian 81 Seafood/Steak Black Angus Bonefish Grill Bravolcuccina italiana 16 24 26 18 Buca di Beppo Bugaboo Steak House Carrabba's Italian grill Brown's Steakhouse 18 23 17 28 15 17 l Fomaio Joe's crab Shack Johnny Carino's Italian Lone Star SteakHouse Longhorn steakhouse Maggio's little Italy McGrath's Fish House Oliven Graden leak Uno Ch spaet8aan The old spaguett factory 79 Uno Chicago Grill 19 Outback Steakhouse Red Lobster 80 Seafood/Steak 78 Seafood/Steak 82 Italian Romano's macorroni grill 18 76 Italian a. (2pt)Comment on the scatter diagram for the variables price and score. b. (2pt) How would you include the variable TYPE of restaurant in a regression model?Explanation / Answer
a)
We can see from the scatter diagram that as the price of the variable is going up the score is also going up.
b)
In order to include TYPE of restaurant variable in the regression model, we would have to keep them as binary variables as 0 and 1.