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A national restaurant chain is composed of 6 5 0 0 restaurants, each of which is located in close proximity to an interstate highway. The
A national restaurant chain is composed of restaurants, each of which is located in close proximity to an
interstate highway. The restaurant's business strategy is to serve its core customer base: people travelling on the
interstate highway system who are looking for a quality dining experience. Customers generally enjoy the
restaurant chain's menu, atmosphere, and consistency from restaurant to restaurant. The company's leadership,
located at corporate headquarters, is very interested in the relationship between the cost of a gallon of gasoline
and the company's revenue. Specifically, the company is concerned that if gasoline prices rise in the near future,
the company's revenue will decline dramatically. The company's research department recently collected data for
analysis in order to support leadership's upcoming discussion of whether the company should expand and diversify
to locations away from an interstate highway. Annual revenue figures from a random sample of restaurants
were collected. The research division also collected and calculated the average annual cost of gasoline at these
restaurants by randomly selecting three gasoline stations near each restaurant. Historical data was then used
to calculate the average annual cost of gasoline. The Restaurant Number, Geographic Region, Annual Revenue,
Average Cost of Gasoline, Miles from the Interstate, Square Footage and Annual Increase in Revenue were
collected for these restaurants.
geograpnic regions. beyond annual revenue, there is a more dynamic inalcator now well the restaurants are doing:
if they are growing or not, which is recorded by the variable Annual Increase in Revenue. Is there an association
between geographic region and growth? Generate a contingency table with Geographic Region as row variable
and Annual Increase in Revenue as column variable.
If we wish to investigate if restaurants in one region do better than restaurants in other regions with respect to
Annual Increase, what display do we need?
A Column percent
B Percent of total
C Expected count
D Row percent
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