Question
Comet Diner is a small restaurant chain that is considering expanding into a new market, Capital City. Before deciding to open locations in Capital City,
Comet Diner is a small restaurant chain that is considering expanding into a new market, Capital City. Before deciding to open locations in Capital City, Comet management decided to conduct research into the consumption patterns of Capital City residents. Of primary concern to Comet management was the following:
- Do Capital City residents spend more on food outside the home than the typical Comet customer in existing markets?
- When Capital City residents dine out, do they typically spend more on alcohol with their meals than the typical Comet customer in existing markets? While this may not be a determining factor in deciding whether to open a location in Capital City, it may affect whether the chain decides to pursue a liquor license from local authorities.
- Many of Comet's competitors have recently developed tableside kiosks that allow customers to enter their own order and pay without the assistance of a food server. The chain has not implemented any of these devices yet, but Capital City could serve as a test market. As part of its market research, Comet management tried to gauge how receptive Capital City residents would be to such devices.
A survey of 250 Capital City residents was conducted by a research firm hired by Comet. The firm has extensive experience in conducting surveys, and it minimized all non-sampling errors that could arise (e.g., measurement error, nonresponse error). A similar survey, without the questions about kiosks, was recently conducted with 275 residents from the existing market. An analyst for the research firm produced a table summarizing the results from the two surveys. The table provided by the research firm can be accessed here. download
As a manager for Comet, it is up to you and your team to evaluate the data provided by the research firm and to provide answers to your company's questions, as best as you can. Your audience knows nothing about statistical inference. Therefore, you will need to describe the findings accurately and clearly, with recommended decisions when possible.
Note that there may be information in the table that is irrelevant to management's decision. Part of this project is to decide what information important to report and what information is not.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started