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Data analysis report

Divine Elegance: A Restaurant
Table of Contents
Introduction ........................................................................................................................................... 2
Preliminary Analysis ............................................................................................................................... 2
Data Screening and Hypothesis Testing ................................................................................................... 2
1. How much are potential patrons willing to pay for the entres? Is the $18 amount from the forecasting model
correct? ................................................................................................................................................................................................................. 2
2. Can Michael expect all patrons to spend an average of $200 a month on food? ............................................................... 4
3. Which zip code area(s) provide the best location for the restaurant? Does the expected average monthly
spend differ between potential patrons residing in different zip codes ................................................................................... 6
4. Does the likelihood to patronize the restaurant different between people with different income levels? ........... 8
5.How elegant should the dcor be? Would potential patrons prefer simple or elegant dcor? .................................... 9
6. Should there be live entertainment? Would potential patrons prefer a string quartet or a jazz combo? ........... 10
7. Which radio station(s) should Michael select for advertising? Which type of radio programming do people
most likely to patronize the restaurant listen to? ............................................................................................................................ 10
8. Can the likelihood of patronizing the restaurant be explained in terms of evaluations on restaurant
preference variables (Variables 11-20), age, family size and gender when all of these variables are considered
simultaneously? (*Hint, you may need to recode the Year Born variable to determine age). .................................... 11
9. Does the average age between a probable and non probable patron differ? .................................................................. 13
10. Is there a relationship between gender and whether or not someone is a probable patron? ............................... 14
Conclusion and Recommendation ......................................................................................................... 15
Appendix A ........................................................................................................................................... 17
Categorical ........................................................................................................................................................................................................ 17
Quantitate ......................................................................................................................................................................................................... 24



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Introduction
Michael Jenkins wants to open his own dream restaurant. Before open his restaurant, he has some
concerns, firstly, he want to know is there demand for an upscale restaurant. Secondly, he wants to know
how to design and what are the operating characteristics. Thirdly, the location of the restaurant will be
recommended. Lastly, the methods to promote the restaurant will be given. In order to give the decision
to Michael, the report will use different statistical methods to explore the data collected from survey and
help Michael to make decisions. After the data analysis, the conclusion and recommendation will be given
to Michael.

Preliminary Analysis
The frequencies for categorical variables and descriptive statistics for variables are shows in appendix A.
According to the frequencies for categorical variables, we find that all the people in the survey went to this
type of restaurant at least once every two week with moderate likelihood to patronlize this restaurant. In
the radio section, almost all the customers listen to the radio and rock music are they favorite. In the TV
section, the customers like 10:00 pm news. Also they like local news section in the newspaper. For the
operating characteristics, they somewhat prefer the waterfront, like simple dcor, prefer the restaurant
not too fat from home. And not prefer large variety of Entrees and unusual entrees. In the consumers
characteristics section, Almost 60% customers have bachelors degree and more than half are married with
income range from $50,000 to $74,999.
The preliminary analysis give the general idea from the customers, however, the deeper statistical test
need to conduct in order to get the deeper understanding with the customers.

Data Screening and Hypothesis Testing
1. How much are potential patrons willing to pay for the entres? Is the $18 amount from the
forecasting model correct?
The data present very well in this question, we assume that the populations are normally distributed.




1. State the null and alternate hypotheses
H
0
:
H
a
:
3

2. Choose an appropriate statistical technique to test the hypothesis
One sample t-test is used to test the hypothesis because the variable is independent and the one sample t-
test compares the mean score of a sample to a known value.

3. Provide a summary of the nature (characteristics) of the test selected
Reject null hypothesis is p value less than 0.05.

4. Perform the appropriate test using SPSS



5. Report the results (including test statistic and p-value)
The t value is 1.567 and the p-value is 0.118

6. Include appropriate graphical representation of the results (if appropriate)

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7. Provide a suitable description for the graphical output
The distribution is skewed to the right. The average amount of patrons willing to pay is $18.8353.

8. Provide a statistical interpretation
P value is 0.118 is greater than the critical value of 0.05. Do not reject null hypothesis. There is sufficient
evidence to shows that the potential patron willing to pay for the entrees is $18.

9. Provide a non-statistical interpretation (in laymans terms)
The potential patrons willing to pay $18 for the entre, the best price strategy for entre should be greater
than $18.
2. Can Michael expect all patrons to spend an average of $200 a month on food?

The data present very well in this question, we assume that the populations are normally distributed.

1. State the null and alternate hypotheses
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H
0
:
H
a
:

2. Choose an appropriate statistical technique to test the hypothesis
One sample t-test is used to test the hypothesis because the variable is independent and the one sample t-
test compares the mean score of a sample to a known value.

3. Provide a summary of the nature (characteristics) of the test selected
Reject null hypothesis is p value less than 0.05.

4. Perform the appropriate test using SPSS

5. Report the results (including test statistic and p-value)
The t value is -10.775 and the p-value is 0.000

6. Include appropriate graphical representation of the results (if appropriate)

7. Provide a suitable description for the graphical output
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The distribution is skewed to the right. The average amount spend per month in restaurants is $150.05

8. Provide a statistical interpretation
P value is 0.000 is less than the critical value of 0.05. Reject null hypothesis. There is insufficient evidence
to shows that all patrons to spend an average of $200 a month on food.

9. Provide a non-statistical interpretation (in laymans terms)
The potential patrons spend on average is not equal to $200, may be less than $200. Michael should do a
marketing research, is this area suitable for the upper class restaurant.
3. Which zip code area(s) provide the best location for the restaurant? Does the expected
average monthly spend differ between potential patrons residing in different zip codes
The data present very well in this question, we assume that the populations are normally distributed.

1. State the null and alternate hypotheses
H
0
:

H
a
: at least one mean is significantly different

2. Choose an appropriate statistical technique to test the hypothesis
One way ANOVA method is chosen because its data is more than two independence means.

3. Provide a summary of the nature (characteristics) of the test selected
Reject null hypothesis is p value less than 0.05.

4. Perform the appropriate test using SPSS
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5. Report the results (including test statistic and p-value)
The F value is 313.333 and the p-value is 0.000

6. Include appropriate graphical representation of the results (if appropriate)

7. Provide a suitable description for the graphical output
As can be seen in the graph, the people live in postcode B spend higher than the other postcode area.

8. Provide a statistical interpretation

P value is 0.000 is less than the critical value of 0.05. Reject null hypothesis. There is sufficient evidence to
shows that at least one mean is significantly different.

9. Provide a non-statistical interpretation (in laymans terms)
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General speaking, the people live in postcode B spend higher than the other postcode area. Michael can
locate his restaurant in this area.

4. Does the likelihood to patronize the restaurant different between people with different
income levels?
1. State the null and alternate hypotheses
H
0
:

H
a
: at least one mean is significantly different

2. Choose an appropriate statistical technique to test the hypothesis
One way ANOVA method is chosen because its data is more than two independence means.

3. Provide a summary of the nature (characteristics) of the test selected
Reject null hypothesis is p value less than 0.05.

4. Perform the appropriate test using SPSS





5. Report the results (including test statistic and p-value)
The F value is 188.28 and the p-value is 0.000
6. Provide a statistical interpretation

P value is 0.000 is less than the critical value of 0.05. Reject null hypothesis. There is sufficient evidence to
shows that at least one mean is significantly different.

7. Provide a non-statistical interpretation (in laymans terms)
General speaking, the likelihood to patronize the restaurant increase as the peoples income levels
increases.

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5.How elegant should the dcor be? Would potential patrons prefer simple or elegant dcor?


From the histogram, we can know that the people prefer simple dcor more than elegant dcor. A SPSS
analysis as following.


1. State the null and alternate hypotheses
H
0
: the level of preference over simple style = the level of preference over elegant style
H
a
: the level of preference over simple style the level of preference over elegant style

2. Choose an appropriate statistical technique to test the hypothesis
Paired test

3. Provide a summary of the nature (characteristics) of the test selected
Reject null hypothesis is p value less than 0.05.

4. Perform the appropriate test using SPSS


5. Report the results (including test statistic and p-value)
The t value is 8.564 and the p-value is 0.000
6. Provide a statistical interpretation
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P value is 0.000 is less than the critical value of 0.05. Reject null hypothesis. There is sufficient evidence to
shows that the level of preference over simple dcor is not the same as the level of preference over
elegant dcor.

7. Provide a non-statistical interpretation (in laymans terms)
The people prefer simple dcor more than elegant dcor, Michael can use this information to set up the
new restaurant.

6. Should there be live entertainment? Would potential patrons prefer a string quartet or a jazz
combo?

1. State the null and alternate hypotheses
H
0
: the level of preference over String Quartet is equal to the level of preference over Jazz Combo
H
a
: the level of preference over String Quartet is not equal the level of preference over Jazz Combo

2. Choose an appropriate statistical technique to test the hypothesis
Paired test

3. Provide a summary of the nature (characteristics) of the test selected
Reject null hypothesis is p value less than 0.05.
4. Perform the appropriate test using SPSS

5. Report the results (including test statistic and p-value)
The t value is -10.30 and the p-value is 0.000
6. Provide a statistical interpretation
P value is 0.000 is less than the critical value of 0.05. Reject null hypothesis. There is sufficient evidence to
shows that the level of preference over String Quartet is not equal the level of preference over Jazz
Combo.

7. Provide a non-statistical interpretation (in laymans terms)
There is a difference in likelihood between the string quartet and the jazz combo. The live entertainment
should choose the jazz combo for the restaurant.

7. Which radio station(s) should Michael select for advertising? Which type of radio
programming do people most likely to patronize the restaurant listen to?
1. State the null and alternate hypotheses
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H
0
: Average likelihood in Country &Western = Easy Listening = Talk or News = Rock
H
a
: At least type of the likelihood is significantly different

2. Choose an appropriate statistical technique to test the hypothesis
ANOVA

3. Provide a summary of the nature (characteristics) of the test selected
Reject null hypothesis is p value less than 0.05.
4. Perform the appropriate test using SPSS


5. Report the results (including test statistic and p-value)
The F value is 131.581 and the p-value is 0.000
6. Provide a statistical interpretation
P value is 0.000 is less than the critical value of 0.05. Reject null hypothesis. There is sufficient evidence to
shows that there are significant differences between Country &Western, Easy Listening, Talk or News and
Rock. In addition, the mean for the Easy listening is the highest.

7. Provide a non-statistical interpretation (in laymans terms)
Easy listening radio station should Michael select for advertising. This also the type of radio programming
do people most likely to patronize the restaurant listen to.

8. Can the likelihood of patronizing the restaurant be explained in terms of evaluations on
restaurant preference variables (Variables 11-20), age, family size and gender when all of
these variables are considered simultaneously? (*Hint, you may need to recode the Year Born
variable to determine age).

1. State the null and alternate hypotheses
H
0
: All the coefficients are the same
H
a
: At least one coefficient is not the same

2. Choose an appropriate statistical technique to test the hypothesis
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Regression

3. Provide a summary of the nature (characteristics) of the test selected
Reject null hypothesis is p value less than 0.05.
4. Perform the appropriate test using SPSS




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5. Report the results (including test statistic and p-value)
The F value is 59.427 and the p-value is 0.000
6. Provide a statistical interpretation
P value is 0.000 is less than the critical value of 0.05. Reject null hypothesis. There is sufficient evidence to
shows that there are significant differences between coefficients. Also, the coefficients for each variable,
we can find that in the regression model. For example, the coefficient for slope is 1.396, the coefficient for
prefer waterfront view is 0.189.

7. Provide a non-statistical interpretation (in laymans terms)
Michael can use the regression model to predict the likelihood of patronizing the restaurant. The data fit
the model very well.
9. Does the average age between a probable and non probable patron differ?

1. State the null and alternate hypotheses
H
0
: Average age of probable patron = Average age of non probable patron
H
a
: Average age of probable patron Average age of non probable patron

2. Choose an appropriate statistical technique to test the hypothesis
Independent t test

3. Provide a summary of the nature (characteristics) of the test selected
Reject null hypothesis is p value less than 0.05.
4. Perform the appropriate test using SPSS
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5. Report the results (including test statistic and p-value)
The t value is 11.414 and the p-value is 0.000
6. Provide a statistical interpretation
P value is 0.000 is less than the critical value of 0.05. Reject null hypothesis. There is sufficient evidence to
shows that the average age between a probable and non probable patron differ.

7. Provide a non-statistical interpretation (in laymans terms)
There is difference between probably and no probably Patrons in average ages, therefore, Michael should
consider for the age group.

10. Is there a relationship between gender and whether or not someone is a probable patron?

1. State the null and alternate hypotheses
H
0
: there is no relationship between gender and probable patron
H
1
: there is a relationship between gender and probable patron


2. Choose an appropriate statistical technique to test the hypothesis
Chi square test

3. Provide a summary of the nature (characteristics) of the test selected
Reject null hypothesis is p value less than 0.05.

4. Perform the appropriate test using SPSS
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5. Report the results (including test statistic and p-value)
The chi-square value is 0.285 and p-value is 0.593 in the chi-square test
6. Provide a statistical interpretation
P value is 0.593 is higher than the critical value of 0.05. Do no reject null hypothesis. There is insufficient
evidence to shows that there is a relationship between gender and whether or not someone is a probable
patron
7. Provide a non-statistical interpretation (in laymans terms)
There is no relationship between gender, therefore, Michael do not need to consider about the gender in
order to patron of the new restaurant.


Conclusion and Recommendation
From the data analysis, the main aim is to help Michael make a decision for the new restaurant, there
are some recommendations, firstly of all, the price for the entre should be around $18 along with the
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patrons spend less than $200 monthly for the meal. The best location for the restaurant is the Post
code area B, Michael should use simple dcor for the new restaurant, and Jazz band for the live music
should be considered. Further, the patrons like easy listening music, Michael should consider to select
this for advertising in the radio. Lastly, the average age between a probable and non-probable patron
are differ but there is no relationship between genders.

Overall, the data analysis is useful for make decision and the output is useful for Michael. Based on the
recommendation, Michael will succeed and realise his dream.


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Appendix A
Categorical

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Quantitate