Application: Measuring and managing Customer Satisfaction: Use the Excel file RestaurantRatings

The Consumer Reports customer satisfaction survey is based upon 148,599 visits to full service restaurant chains. Assume this data set is representative of the results reported. The variable restaurant type indicates whether the restaurant is an Italian restaurant or a seafood/steakhouse. Price indicates the average amount a person paid for dinner and drinks minus the tip. Score reflects overall customer satisfaction and a score of 80 can be interpreted as very satisfied. Assume alpha = 0.05 for all parts of this question.

First, develop a dummy variable to indicate the restaurants type. Use a dummy variable code of 0 to indicate an Italian restaurant and a 1 to indicate a seafood/steakhouse. Develop a regression equation predicting the customer satisfaction score based upon both price and restaurant type.

What is the predicted satisfaction score for a seafood/steakhouse when average meal price spent is $22?

Score 77 79 85 84 81 77 86 75 83 71 Restaurant Type Price (S) Bertucci's Italian 16 Black Angus Steakhouse Seafood/S1 24 Bonefish Grill Seafood/S1 26 Bravo! Cucina Italiana Italian 18 Buca di Beppo Italian 17 Bugaboo Creek Steak House Seafood/S1 18 Carrabba's Italian Grill Italian 23 Charlie Brown's Steakhouse Seafood/S1 17 Il Fornaio Italian 28 Joe's Crab Shack Seafood/S1 15 Johnny Carino's Italian Italian 17 Lone Star Steakhouse & Saloon Seafood/S1 17 LongHorn Steakhouse Seafood/S1 19 Maggiano's Little Italy Italian 22 McGrath's Fish House Seafood/S1 16 Olive Garden Italian 19 Outback Steakhouse Seafood/S1 20 Red Lobster Seafood/S1 18 Romano's Macaroni Grill Italian 18 The Old Spaghetti Factory Italian 12 Uno Chicago Grill Italian 16 81 76 81 83 81 81 80 78 82 79 76