Now that you have dealt with your cashier Joe, you can turn your attention back to examining how profitable your concession stands are. This past week, several events were held at the venue. Some events were well attended, which resulted in long waiting times for food and beverages. Some events were not well attended, which resulted in no waiting time, so customers were served immediately.
You’ve been wondering whether customers spend more money if they wait longer in line.
The goal of the assignment is to effectively use the formulas and functions to determine if there is a relationship between waiting time and money spent. Complete the following steps:
Run the regression and calculate r.
Interpret the data.
Submit your results.
To run the regression and calculate r, open the STAT 222 The Longer You Wait (XLSX) spreadsheet.Preview the document Column A will contain waiting time in minutes for 20 randomly selected customers. Column B will include the dollars spent by these customers. To populate column A, copy one of the Waiting Times – Random Number Table -1-20 columns (D-I) and paste it into cell A3. To populate column B, copy one of the Dollars Spent – Random Number Table – $2-$40 columns (K-O) and paste it in cell B3.
Once you have the two columns with 20 values each, use these resources to run the regression and include the Pearson’s r correlation coefficient.
How to do a Linear Regression on Excel (YouTube 5:18) (Links to an external site.)
Step-by-Step Instructions: Scatter Plot, Trend Line, and Correlation
When you are finished, your spreadsheet should look similar to this one. Remember, your numbers will be different, so your regression line will also be different (either positivity or negatively skewed). We are not looking for the “right number” to an assignment question. The goal of the assignment is to effectively use the formulas and functions of excel to evaluate your data, then interpret the results.
Now evaluate your data and interpret the results. Answer the following questions in a document.
What is Pearson’s r that you calculated, and what does it tell us?
What is the r2 that you calculated, and what does it tell us?
Is this a good model for prediction? Why or why not?
Is there a relationship between waiting time and money spent?
Submit the answers to the questions and your spreadsheet to this assignment.
Review the Assignment Rubric for detailed grading information.