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3 Problem III The Consumer Reports Restaurant Customer Satisfaction Survey is based upon 148,599 visits to full-service restaurant chains (Consumer Reports website, February 11,

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3 Problem III 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. Restaurant LongHom, Steakhouse Maggiano's Little Italy McGrath's Fish House Price ($) Score Seafood/Steakhouse 19 81 Italian 22 83 Seafood/Steakhouse 16 81 Olive Garden Italian 19 81 Outback Steakhouse Seafood/Steakhouse 20 80 Red Lobster Seafood/Steakhouse 18 78 Restaurant Price ($) Score Romano's Macaroni Grill Italian 18 82 Bertucci's Italian 16 77 Black Angus Seafood/Steakhouse 24 79 79 The Old Spaghetti Factory Italian 12 12 79 79 Steakhouse Bonefish Grill Seafood/Steakhouse 26 85 Uno Chicago Grill Italian 16 76 76 Bravo! Cucina Italiana Italian 18 84 Buca di Beppo Italian 17 81 Bugaboo Creek Steak Seafood/Steakhouse 18 77 House Carrabba's Italian Grill Italian 23 86 Charlie Brown's Seafood/Steakhouse 17 75 Steakhouse 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 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?

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