Question

The Conch Café, located in Gulf Shores, Alabama, features casual lunches with a great view of the Gulf of Mexico. To accommodate the increase in business during the summer vacation season, Fuzzy Conch, the owner, hires a large number of servers as seasonal help. When he interviews a prospective server, he would like to provide data on the amount a server can earn in tips. He believes that the amount of the bill and the number of diners are both related to the amount of the tip. He gathered the following sample information.

CustomerAmount of TipAmount of BillNumber of DinersCustomerAmount of TipAmount of BillNumber of Diners

Customer	Amount of Tip ($)	Amount of Bill ($)	Diners
1	5.15	74.5	2
2	4.5	28.23	4
3	1	10.65	1
4	2.4	19.82	3
5	5	28.62	3
6	4.25	24.83	2
7	0.5	6.25	1
8	6	49.2	4
9	5	43.26	3
10	4.65	62.23	1
11	5.6	84.81	1
12	6	34.99	3
13	4	33.91	4
14	3.35	23.06	2
15	0.75	4.65	1
16	3.3	23.59	2
17	3.5	22.3	2
18	3.25	32	2
19	5.4	50.02	4
20	2.25	17.6	3
21	4.35	63.16	6
22	3	20.27	2
23	1.25	19.53	2
24	3.25	27.03	3
25	3	21.28	2
26	6.25	43.38	4
27	5.6	28.12	4
28	2.5	26.25	2
29	6.85	53.08	7
30	8.6	87.85	8

  Click here for the Excel Data File

a-1. Develop a multiple regression equation with the amount of tips as the dependent variable and the amount of the bill and the number of diners as independent variables and complete the table. (Negative amounts should be indicated by a minus sign. Round your answers to 3 decimal places.)

Predictor	Coefficient	SE Coefficient	t	p-value
Constant
Bill
Diners

a-2. Write out the regression equation. (Negative amounts should be indicated by a minus sign. Round your answers to 3 decimal places.)

Tip= ____ + ____ Bill + _____ Diners

a-3. How much does another diner add to the amount of the tips? (Round your answer to 2 decimal places.)

b. According to the p-values, which variable should be deleted if alpha = 0.05?

Answer 1

-----------------------------------------------------------------------------------------------------------------------------------------