The dataset RestaurantTips has information from First Crush bistro in northern New York state. Computer output of descriptive statistics for the variable giving the size of the tip is shown:

(a) How many tips are included in the dataset? What is the mean? What is the standard deviation?

(b) Compute the standard error for the mean using the formula SE = s/ˆšn. Compare the result to the value given under €˜€˜SE Mean€ in the computer output.
(c) Use the summary statistics to compute a 95% confidence interval for the average tip given at this restaurant.
(d) Compare the answer in part (c) to the confidence interval given in the following computer output for the same data:

(e) Interpret the confidence interval in context.

Transcribed Image Text:

Descriptive Statistics: Tip Variable Tip SE Mean 0.193 N N* Mean 3.849 StDev 157 2.421 Q1 Minimum Median 3.350 Q3 Maximum 15.000 0.250 2.050 5.000 One-Sample T: Tip N Mean StDev SE Mean 0.193 (3.468, 4.231) 95% CI Variable Tip 157 3.849 2.421