Data Analysis Assignment

Hobbits’ Choice Restaurant

Intro to Marketing Research

Section Eleven

Joel Rakes

1
1. Perform the appropriate descriptive analysis for each question on the question
and interpret it.

Descriptive Statistics

N Minimum Maximum Mean Std. Deviation

How many total dollars
do you spend per month $150.052
in restaurants (for your 400 $5.00 $450.00 $92.70629
5
meals only)?
What would you expect
an average evening
meal entree item alone 340 $6.00 $60.00 $18.8353 $9.82784
to be priced?
Year Born 400 1928 1975 1957.46 9.516
Including children under
18 living with you, what 400 1 7 2.67 1.379
is your family size?
Recoded income to
$1,000s using midpoints 400 7.50 175.00 76.4688 53.13583
of questionnaire ranges
age 400 28.00 75.00 45.5375 9.51577
Valid N (listwise) 340

For “total dollars spent in restaurants per month”, the mean dollar amount is $150.05.
The responses for this question raged from $5 to $450. This mean dollar amount should
give Dean a better idea on what an average consumer would spend a month on dining
out.

For “expected price of an average evening meal entrée”, the mean is $18.84 and the
answers varied from a minimum of $6 to a maximum of $60.

The mean for “year born” is 1957. The responses ranged from the year of 1928 to 1975.
This shows Dean that his average client’s age is on the older side.

The mean for “family size” is 2.67. Responses on this question ranged from family sizes
of 1 to family sizes of 7.

The recoded income of $1,000’s using the midpoints’ mean was $76.4688 or
$76,468.80. This gives Dean a better idea of the income of consumers.

Lastly, the mean age of respondents was 45.53. Once again showing the consumer’s
older age.

2
 Do you eat at this type of restaurant at least once every two
weeks?

400

300
Frequency

200

100

0 Mean = 1
Std. Dev. = 0
0.7 0.8 0.9 1 1.1 1.2 1.3
N = 400
Do you eat at this type of restaurant at least
once every two weeks?

The above histogram shows that every single respondent replied with a “yes” to the
question of “do you eat at this type of restaurant at least once every two weeks?”
Therefore the mean is 1.

How likely would it be for you to patronize this restaurant (new

upscale restaurant)?

200

150
Frequency

100

50

0 Mean = 3
Std. Dev. = 1.237
0 1 2 3 4 5 6
N = 400
How likely would it be for you to patronize
this restaurant (new upscale restaurant)?

This histogram shows that both the mean and the mode response is “3” which means
“neither likely nor unlikely” to patronize a new upscale restaurant (a general level of
indifference.)

3
 Would you describe yourself as one who listens to the radio?

400

300
Frequency

200

100

0 Mean = 1.04
Std. Dev. = 0.19
0.5 1 1.5 2 2.5
N = 400
Would you describe yourself as one who
listens to the radio?
According to the above frequency distribution, the overwhelming majority of
respondents had a response of “yes” that they describe themselves as one who listens
to the radio.

To which type of radio programming do you most often listen?

150
Frequency

100

50

0 Mean = 2.67
Std. Dev. = 0.997
0 1 2 3 4 5
N = 385
To which type of radio programming do you
most often listen?

The most popular response for type of radio programming listened to is “Rock” music,
while the other options were very close with each other.

4
 Would you describe yourself as a viewer of TV local news?

400

300
Frequency

200

100

0 Mean = 1.11
Std. Dev. = 0.313
0.5 1 1.5 2 2.5
N = 400
Would you describe yourself as a viewer of
TV local news?

The vast majority of respondents responded with a response of “1” representing “yes”
that they watch TV local news.

Which newscast do you watch most frequently?

200

150
Frequency

100

50

0 Mean = 3.36
Std. Dev. = 0.882
0 1 2 3 4 5
N = 356
Which newscast do you watch most
frequently?

In response to this question, the most common response was “4” meaning “10 pm
News”. The next most common was “3” meaning the 6 pm news.

5
 Do you read the newspaper?

400

300
Frequency

200

100

Mean = 1.06
Std. Dev. = 0.228
0
N = 400
0.5 1 1.5 2 2.5

Do you read the newspaper?

For the question “do you read the newspaper?”, the most frequent response is “1” or
“yes”. Most consumers appear to read the newspaper.

Which section of the local newspaper would you say you read
most frequently?

120

100

80
Frequency

60

40

20

0 Mean = 3.16
Std. Dev. = 1.329
0 1 2 3 4 5 6
N = 379
Which section of the local newspaper would
you say you read most frequently?

The most common response to “which section of the newspaper is read most often” was
listed as 3, or the “Local” section.

6
 Do you subscribe to City Magazine?

250

Frequency 200

150

100

50

Mean = 1.55
Std. Dev. = 0.498
0
N = 400
0.5 1 1.5 2 2.5

Do you subscribe to City Magazine?

In response to the question “Do you subscribe to City Magazine?” consumers were split
near evenly between yes and no. However there were slightly more responses of “no.”

Prefer Waterfront View

150

120
Frequency

90

60

30

Mean = 3.42
Std. Dev. = 1.333
0
N = 400
0 1 2 3 4 5 6

Prefer Waterfront View

When it came to preferring a waterfront view or not, the most common response was 4
or “somewhat prefer.”

7
 Prefer Drive Less than 30 Minutes

150

120

Frequency
90

60

30

Mean = 2.72
Std. Dev. = 1.311
0
N = 400
0 1 2 3 4 5 6

Prefer Drive Less than 30 Minutes

The question of “Prefer drive less than 30 minutes” drew a most frequent response of 2
meaning “somewhat not prefer”.

Prefer Formal Waitstaff Wearing Tuxedos

140

120

100
Frequency

80

60

40

20
Mean = 2.46
Std. Dev. = 1.516
0
N = 400
0 1 2 3 4 5 6

Prefer Formal Waitstaff Wearing Tuxedos

With regards to preferring formal wait staff wearing tuxedos, the majority of respondents
answered with 1 or 2 meaning they felt that they’d “very strongly not prefer” or
“somewhat not prefer” a formal wait staff with tuxedos.

8
 Prefer Unusual Desserts

150

Frequency
100

50

Mean = 2.41
Std. Dev. = 1.514
0
N = 400
0 1 2 3 4 5 6

Prefer Unusual Desserts

The bulk of the respondents replied with responses of 1 or 2, meaning they did “very
strongly not prefer” or “somewhat not prefer” unusual desserts.”

Prefer Large Variety of Entrees

150

120
Frequency

90

60

30

Mean = 2.48
Std. Dev. = 1.466
0
N = 400
0 1 2 3 4 5 6

Prefer Large Variety of Entrees

The responses for this question show a majority of “very strongly not prefer” about
preferring a large variety of entrées.

9
 Prefer Unusual Entrees

200

150
Frequency

100

50

Mean = 2.4
Std. Dev. = 1.55
0
N = 400
0 1 2 3 4 5 6

Prefer Unusual Entrees

The group stated a majority of “very strongly not prefer” in response to preferring
“unusual entrees” or not.

Prefer Simple Decor

150

120
Frequency

90

60

30

Mean = 3.58
Std. Dev. = 1.492
0
N = 400
0 1 2 3 4 5 6

Prefer Simple Decor

Respondents showed a majority of “very strongly prefer” followed closely by

“somewhere prefer” in response to whether or not they preferred simple décor.

10
 Prefer Elegant Decor

200

150
Frequency

100

50

Mean = 2.33
Std. Dev. = 1.51
0
N = 400
0 1 2 3 4 5 6

Prefer Elegant Decor

When faced with this question, the group replied with a majority of “very strongly not
prefer” in response to preferring or disliking elegant décor.

Prefer String Quartet

140

120

100
Frequency

80

60

40

20
Mean = 2.5
Std. Dev. = 1.42
0
N = 400
0 1 2 3 4 5 6

Prefer String Quartet

Respondents showed that they “very strongly not prefer” string quartet music, closely
followed by “somewhat not prefer.”

11
 Prefer Jazz Combo

140

120

100

Frequency
80

60

40

20
Mean = 3.7
Std. Dev. = 1.221
0
N = 400
0 1 2 3 4 5 6

Prefer Jazz Combo

Respondents replied “very strongly prefer” in regards to preferring a jazz combo, closely
followed by “somewhat prefer.”

What is your highest level of education?

250

200
Frequency

150

100

50

Mean = 5.77
Std. Dev. = 1.413
0
N = 400
0 2 4 6 8 10

What is your highest level of education?

With regards to their level of education, the majority of the respondents have completed
a bachelor’s degree.

12
 What is your marital status?

300

250

200
Frequency

150

100

50

Mean = 1.86
Std. Dev. = 0.547
0
N = 400
0.5 1 1.5 2 2.5 3 3.5

What is your marital status?

The majority of the respondents are married, followed by single and then other.

Please check the letter that includes the Zip Code in which you
live (coded by letter).

250

200
Frequency

150

100

50

0 Mean = 2.7
Std. Dev. = 0.715
0 1 2 3 4 5
N = 400
Please check the letter that includes the Zip
Code in which you live (coded by letter).

The majority of the respondents replied “C” meaning they live in zip codes 6, 7, 8, & 9.

13
 Which of the following categories best describes your before
tax household income?

140

120

Frequency 100

80

60

40

20

0
0 2 4 6 8 Mean = 4.18
Std. Dev. = 1.749
Which of the following categories best N = 400
describes your before tax household
income?

The majority of respondents replied with a response of 4 which represents a value

$50,000 to $74,999.

What is your gender?

250

200
Frequency

150

100

50

Mean = 1.49
Std. Dev. = 0.501
0
N = 400
0.5 1 1.5 2 2.5

What is your gender?

In regards to gender, the responses were split almost evenly with 1 and 2 meaning,
almost 50% were males and almost 50% were females.

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 Probable Patron of Hobbit's Choice?

300

250

200
Frequency

150

100

50

Mean = 1.72
Std. Dev. = 0.447
0
N = 400
0.5 1 1.5 2 2.5

Probable Patron of Hobbit's Choice?

The majority of responses were a 2 or “no” to the question, in other words, that they
would not be a probable patron of Hobbit’s Choice.

2. What are the population estimates for each of the following?

a. preference for “easy listening” radio programming

To which type of radio programming do you most often listen?

Cumulative
Frequency Percent Valid Percent Percent
Valid Country&Western 66 16.5 17.1 17.1
Easy Listening 78 19.5 20.3 37.4
Rock 159 39.8 41.3 78.7
Talk/News 82 20.5 21.3 100.0
Total 385 96.3 100.0
Missing System 15 3.8
Total 400 100.0

p=.203
n=385
z=1.96

.203 +- 1.96 SquareRootOf(.203)(1-.203)/385

15
Based off the above calculations, we are 95% certain that the population proportion falls
in the range of 16.28% and 24.32%

Since only between 16% and 24% of the population actually listen to the easy listening
genre, Dean would be smart to consider playing a different type of music genre.

b. viewing of 10 p.m. local news on tv

Which newscast do you watch most frequently?

Cumulative
Frequency Percent Valid Percent Percent
Valid 7:00 am News 32 8.0 9.0 9.0
Noon News 1 .3 .3 9.3
6:00 pm News 129 32.3 36.2 45.5
10:00 pm News 194 48.5 54.5 100.0
Total 356 89.0 100.0
Missing System 44 11.0
Total 400 100.0

p=.545
n=356
z=1.96

.545 +-1.96 SquareRootOf(.545)(1-.545)/356

Based off the above calculations, we are 95% certain that the population proportion falls
in the range of 49.33% and 59.67%

This data shows that a large proportion of the population watches the 10 p.m. news.
Therefore, this would be a good timeslot for Dean to advertise during.

c. average age of heads of household

One-Sample Test

Test Value = 0
95% Confidence
Interval of the
Difference
Mean
t df Sig. (2-tailed) Difference Lower Upper
age 95.709 399 .000 45.53750 44.6021 46.4729

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Based off the one-sample t-test, we are 95% sure that the population estimate falls in
the range of the ages 44.6 and 46.47. The mean age is also shown to be 45.54.

Due to the confidence interval’s range being so small, there is much certainty that the
average age is roughly around 45. This age group should therefore be the focus of
marketing efforts.

d. average price paid for an evening mean entrée

One-Sample Test

Test Value = 0
95% Confidence
Interval of the
Difference
Mean
t df Sig. (2-tailed) Difference Lower Upper
What would you expect
an average evening
meal entree item alone 35.339 339 .000 $18.83529 $17.7869 $19.8837
to be priced?

From the one sample t-test, we see that we are 95% certain that the population
estimate falls in the range of $17.78 and $19.88.

This data shows that customers are used to paying a higher price for an evening meal
entrée in restaurants of similar nature. Dean should use this pricing information to his
advantage when deciding on the pricing of his menu.

17
3. Because Jeff Dean’s restaurant will be upscale, it will appeal to high-income
consumers. Jeff hopes that at least 30 percent of the households have an income
level of $100,000 higher. Test this hypothesis.

Which of the following categories best describes your before tax household income?

Cumulative
Frequency Percent Valid Percent Percent
Valid <$15,000 26 6.5 6.5 6.5
$15,000 to $24,999 34 8.5 8.5 15.0
$25,000 to $49,999 82 20.5 20.5 35.5
$50,000 to $74,999 133 33.3 33.3 68.8
$75,000 to $99,999 16 4.0 4.0 72.8
$100,000 to
43 10.8 10.8 83.5
$149,999
$150,000+ 66 16.5 16.5 100.0
Total 400 100.0 100.0

p=.108 + .165 = .273

Ho: Pi = .30
H1: Pi < .30

Sp = SquareRootOf(.273 (1-.273)/400
Sp = .022

Z=.273 - .30/.022
Z =-1.22

Based of the above test, we must fail to reject the null hypothesis due to the z score of
-1.22 not being greater than 1.65.

We lack enough evidence to claim that 30% of the households have an income level of
$100,000 or higher. After gaining this information, it would appear that Dean should
target a lower level of income bracket.

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4. With respect to those who are “very likely” to patronize The Hobbits’ Choice
restaurant, Jeff believes that the will either “very strongly” or “somewhat” prefer
each of the following. (a) wait staff with tuxedos, (b) elegant décor, and (c) jazz
combo music. Does the survey support or refute Jeff’s hypothesis? Interpret your
findings.

One-Sample Statistics

Std. Error
N Mean Std. Deviation Mean
Prefer Formal Waitstaff
Wearing Tuxedos 72 4.68 .470 .055
Prefer Elegant Decor 72 4.50 .504 .059
Prefer Jazz Combo 72 2.60 .944 .111

One-Sample Test

Test Value = 0
95% Confidence
Interval of the
Difference
Mean
t df Sig. (2-tailed) Difference Lower Upper
Prefer Formal Waitstaff
Wearing Tuxedos 84.586 71 .000 4.681 4.57 4.79
Prefer Elegant Decor 75.835 71 .000 4.500 4.38 4.62
Prefer Jazz Combo 23.337 71 .000 2.597 2.38 2.82

The confidence intervals show that:

A. The survey backs up Dean’s belief that customers will either “very strongly” or
“somewhat” prefer formal wait staff wearing tuxedos. The confidence interval range
includes the response of 4 which represents those levels of preference. Based off this
information, Dean should dress his wait staff in tuxedos.

B. The results of the survey also confirm Dean’s idea that customers will either “very
strongly” or “somewhat” prefer elegant decor. The confidence interval range includes
the response of 4 which represents those preference levels. Dean should use elegant
décor based of this information.

C. The survey does not confirm Dean’s belief that customers will either “very strongly”
or “somewhat” prefer jazz combo. The confidence interval range does not include the
response of 4 which represents those preference levels. This information shows that
Dean should consider other options for background music in his new restaurant.

19
 5. Jeff wonders if The Hobbits’ Choice Restaurant is more appealing to women
than it is to men or vice versa. Perform the proper analysis, interpret it, and
answer Jeff’s Question.

Ho: men = women

H1: men do not equal women

The above statistics are not statistically significant due to the number zero being
included in the confidence interval. Also because the p value of .538 is greater than .05.

Sufficient evidence does not exist to suggest that there is a difference in level of appeal
between men and women. Therefore, when planning his marketing strategies, Dean
should not focus on either gender because it appears that there is very little difference
between men and women.

6. With respect to the location of The Hobbits’ Choice Restaurant, is a waterfront

view preferred more than a drive of less than 30 minutes?

Paired Samples Statistics

Std. Error
Mean N Std. Deviation Mean
Pair 1 Prefer Waterfront
3.42 400 1.333 .067
View
Prefer Drive Less than
30 Minutes 2.73 400 1.311 .066

Paired Samples Test

Paired Differences
95% Confidence
Interval of the
Difference
Std. Error
Mean Std. Deviation Mean Lower Upper t df Sig. (2-tailed)
Pair 1 Prefer Waterfront
View - Prefer Drive .695 2.513 .126 .448 .942 5.532 399 .000
Less than 30 Minutes

20
Ho: waterfront – drive less than 30 minutes = 0
H1: waterfront – drive less than 30 minutes does not equal 0

The above table shows that the mean for “waterfront” is 3.42, and the mean for “drive
less than 30 minutes” is 2.73.

The waterfront mean is higher and because the p-value is .000, there is significant
evidence to show that a “waterfront view” is the preference over “drive of less than 30
minutes.”

Therefore, when Dean is deciding on a location for his restaurant, he should focus his
decisions more on a “waterfront view” than being closely located to his patrons because
the statistics have shown that they value a waterfront view more favorably.

7. In general, upscale restaurants are appealing to higher-income households,

whereas they are less appealing to lower-income households. Is this the case for
The Hobbits’ Choice Restaurant?

ANOVA

How likely would it be for you to patronize this restaurant (new upscale restaurant)?
Sum of
Squares Df Mean Square F Sig.
Between Groups 453.301 6 75.550 188.280 .000
Within Groups 157.697 393 .401
Total 610.998 399

4
Mean of likely

<$15,000 $15,000 to $25,000 to $50,000 to $75,000 to $100,000 $150,000+

$24,999 $49,999 $74,999 $99,999 to
$149,999

Which of the following categories best describes your before

tax household income?

21
22
Ho: mean <$15,000 = mean $15,000-$24,999 = + … + = mean $150,000+
H1: at least one mean is different

The data analysis shows that we should reject the null hypothesis (at least one mean is
different) because of the p-value that is .000. Based off the significance values, the top
three income groups have a higher mean of level of appeal than then bottom four
groups.

Therefore, Dean should decide that in his situation, his case is similar to the general
consensus and because of this; he should market his restaurant to people with income
brackets that are higher income.

8. Do older or younger people want unusual desserts and/or unusual entrees?

Ho: beta = 0
H1: beta does not equal 0

Because the significance value for both of the independent variables is .000, we should
reject the null hypothesis for both “prefer unusual entrees” and “prefer unusual
desserts”.

The above graph shows that the coefficient for preferring unusual entrees is .520 (a
positive number). The number shows that as age increases by a 1 year span, the
probability of “preferring unusual entrees” increases too, by .520 of a scale point for
each year period.

With “preferring unusual desserts”, the Pearson correlation coefficient is .483. This
means as age increases during each year, the scale measure of “unusual desserts”
increases .483.

Essentially, this shows that older people prefer “more unusual entrees and desserts.”
If Dean has plans to target older patrons, when planning the menu for the restaurant he
should plan on offering some unusual entrees and desserts on the menu.

23
 9. Create a variable that distinguishes the “probable patrons” (likely to
patronize=4 or 5) from the “not probable patrons” (likely to patronize=1, 2 or 3). If
the probable patrons constitute the target market for Hobbits’ Choice, what is the
demographic makeup of this target market? Use cross tabulations to consider the
demographics of household income, education level, gender, and zip code. Also
consider the media habits of the target market, including magazines, radio,
newscasts, and newspaper.

Ho: There is no relationship between “Likely Patrons” and “Household Income”

H1: There is a relationship between “Likely Patrons” and “Household Income”

Which of the following categories best describes your before tax household income?
$15,000 to $25,000 to $50,000 to $75,000 to $100,000 to
<$15,000 $24,999 $49,999 $74,999 $99,999 $149,999 $150,000+ Total
1 if probable .00 26 34 82 129 6 3 10 290
patron 1.00 0 0 0 4 10 40 56 110
Total 26 34 82 133 16 43 66 400

Chi-Square Tests

Asymp. Sig.
Value df (2-sided)
Pearson Chi-Square 305.177(a
6 .000
)
Likelihood Ratio 335.550 6 .000
Linear-by-Linear
232.485 1 .000
Association
N of Valid Cases
400
a 1 cells (7.1%) have expected count less than 5. The minimum expected count is 4.40.

The null hypothesis should be rejected. The p-value is .000 which is less than .05, so
there is a relationship between “before-tax household income” and “likely patrons.” The
probable patrons responded most often with an income of $150,000+, the second most
often being the $100,000-149,999 category.

This basically means that the probable patrons are upper class people with the highest
incomes. Dean would be wise to use this information when deciding on his target
market. His target market should include patrons with high income, particularly from the
$100,000 and up groups.

24
 Ho: There is no relationship between “Likely Patrons” and “Education”
H1: There is a relationship between “Likely Patrons” and “Education”

What is your highest level of education?

Less than Some High High School Some College Associate Bachelor's Master's Doctorate
High School School Graduate (No Degree) Degree Degree Degree Degree
1 if probable .00 11 14 14 14 11 172 52 2
patron 1.00 0 0 0 0 3 66 34 7
Total 11 14 14 14 14 238 86 9

Chi-Square Tests

Asymp. Sig.
Value df (2-sided)
Pearson Chi-Square 38.027(a) 7 .000
Likelihood Ratio 49.998 7 .000
Linear-by-Linear
30.809 1 .000
Association
N of Valid Cases
400

The null hypothesis should be rejected, because the p-value is .000. There is a
relationship between the highest level of education and likely patrons.
The majority of probable patrons stated that their highest level of education was a
bachelor’s degree. This shows that in education demographics, the target market
includes mostly higher education levels such as a bachelor’s degree.

Ho: There is no relationship between “Likely Patrons” and “Gender”

H1: There is a relationship between “Likely Patrons” and “Gender”
Crosstab

Count
What is your gender?
Male Female Total
1 if probable .00 145 145 290
patron 1.00 59 51 110
Total 204 196 400

25
 Chi-Square Tests

Asymp. Sig. Exact Sig. Exact Sig.

Value df (2-sided) (2-sided) (1-sided)
Pearson Chi-Square .422(b) 1 .516
Continuity
.289 1 .591
Correction(a)
Likelihood Ratio .422 1 .516
Fisher's Exact Test .576 .296
Linear-by-Linear
Association .421 1 .516
N of Valid Cases 400

There isn’t enough evidence to reject the null hypothesis (the significance value is .516,
which is greater than .05.) Therefore, there is no relationship between gender and “likely
patrons.” Both men and women should be included in the target market because there
is no evidence that either gender is more likely to patronize than the other.

Ho: There is no relationship between “Likely Patrons” and “Zip Code”

H1: There is a relationship between “Likely Patrons” and “Zip Code”
Crosstab

Please check the letter that includes the Zip Code in

which you live (coded by letter).
D (10, 11,
A (1 & 2) B (3, 4, & 5) C (6, 7, 8, & 9) & 12) Total
1 if probable .00 20 15 215 40 290
patron 1.00 0 105 5 0 110
Total 20 120 220 40 400

Chi-Square Tests

Asymp. Sig.
Value df (2-sided)
Pearson Chi-Square 309.661(a
3 .000
)
Likelihood Ratio 332.383 3 .000
Linear-by-Linear
127.138 1 .000
Association
N of Valid Cases
400
a 0 cells (.0%) have expected count less than 5. The minimum expected count is 5.50.

We should reject the null hypothesis because there is sufficient evidence and the
significance value is .000. This data suggests that there is a relationship between the
likely patrons and zip code. The most common zip code for probable patrons is “B” or
“3, 4, & 5.” The target market should include the population from zip codes 3, 4, or 5.

26
Ho: There is no relationship between “Likely Patrons” and “Listens to Radio”
H1: There is a relationship between “Likely Patrons” and “Listens to Radio”
Crosstab

Would you describe

yourself as one who
listens to the radio?

Yes No Total
1 if probable .00 277 13 290
patron 1.00 108 2 110
Total 385 15 400

Chi-Square Tests

Asymp. Sig. Exact Sig. Exact Sig.

Value df (2-sided) (2-sided) (1-sided)
Pearson Chi-Square 1.569(b) 1 .210
Continuity
.917 1 .338
Correction(a)
Likelihood Ratio 1.803 1 .179
Fisher's Exact Test .255 .170
Linear-by-Linear
Association 1.565 1 .211
N of Valid Cases 400

The Pearson Chi-Square significance value is .210, and because of this there is
insufficient evidence to reject the null hypothesis (the significance level is greater than
.05.) This means that there is no relationship between “likely patrons” and “listening to
radio.” Therefore, it would not be wise to have the target market be defined by whether
or not someone describes themselves as “one who listening to the radio.”

Ho: There is no relationship between “Likely Patrons” and “Viewer of TV local news”
H1: There is a relationship between “Likely Patrons” and “Viewer of TV local news”

Crosstab

Would you describe

yourself as a viewer of
TV local news?

Yes No Total
1 if probable .00 246 44 290
patron 1.00 110 0 110
Total 356 44 400

27
 Chi-Square Tests

Asymp. Sig. Exact Sig. Exact Sig.

Value Df (2-sided) (2-sided) (1-sided)
Pearson Chi-Square 18.752(b) 1 .000
Continuity
17.235 1 .000
Correction(a)
Likelihood Ratio 30.313 1 .000
Fisher's Exact Test .000 .000
Linear-by-Linear
Association 18.706 1 .000
N of Valid Cases 400
a Computed only for a 2x2 table
b 0 cells (.0%) have expected count less than 5. The minimum expected count is 12.10.

“Viewer of local TV news” has a p-value of .000, which means there is sufficient
evidence to reject the null hypothesis. Therefore, we can assume there is a relationship
between “likely patrons” and “viewer of TV local news.”

All of the probable patrons selected yes, when asked if they were viewers of local TV
news. Since the survey showed vastly that the probable patrons viewed local TV news,
Dean should strive for his target market to include viewers of local TV news.

Ho: There is no relationship between “Likely Patrons” and “Read the newspaper”
H1: There is a relationship between “Likely Patrons” and “Read the newspaper”
Crosstab

Do you read the

newspaper?

Yes No Total
1 if probable .00 274 16 290
patron 1.00 104 6 110
Total 378 22 400

Chi-Square Tests

Asymp. Sig. Exact Sig. Exact Sig.

Value df (2-sided) (2-sided) (1-sided)
Pearson Chi-Square .001(b) 1 .980
Continuity
.000 1 1.000
Correction(a)
Likelihood Ratio .001 1 .980
Fisher's Exact Test 1.000 .599
Linear-by-Linear
Association .001 1 .980
N of Valid Cases 400

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The significance value is shown to be .980, which clearly shows that there is insufficient
evidence to reject the null hypothesis. Therefore, there is no relationship between likely
patrons and reading the newspaper. Dean’s target market should not include any media
habits relating to whether or not they read the newspaper.

Ho: There is no relationship between “Likely Patrons” and “City Magazine”

H1: There is a relationship between “Likely Patrons” and “City Magazine”

Crosstab

Do you subscribe to
City Magazine?

Yes No Total
1 if probable .00 84 206 290
patron 1.00 97 13 110
Total 181 219 400

Chi-Square Tests

Asymp. Sig. Exact Sig. Exact Sig.

Value df (2-sided) (2-sided) (1-sided)
Pearson Chi-Square 112.878(b
1 .000
)
Continuity
110.501 1 .000
Correction(a)
Likelihood Ratio 121.910 1 .000
Fisher's Exact Test .000 .000
Linear-by-Linear
Association 112.596 1 .000
N of Valid Cases 400

Due to the p-value being .000, there is sufficient evidence to reject the null hypothesis
and conclude that there is a relationship between likely patrons and subscribing to City
Magazine. The likely patrons were more likely to have subscribed to City Magazine than
to not subscribe. Therefore, Dean’s target market should focus on individuals who
subscribe to the City Magazine.

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Ho: There is no relationship between “Likely Patrons” and “Type of Radio”
H1: There is a relationship between “Likely Patrons” and “Type of Radio”

Crosstab

To which type of radio programming do you most often

listen?
Country&West
ern Easy Listening Rock Talk/News Total
1 if probable .00 60 20 154 43 277
patron 1.00 6 58 5 39 108
Total 66 78 159 82 385

Chi-Square Tests

Asymp. Sig.
Value df (2-sided)
Pearson Chi-Square 158.965(a
3 .000
)
Likelihood Ratio 170.017 3 .000
Linear-by-Linear
.312 1 .577
Association
N of Valid Cases
385
a 0 cells (.0%) have expected count less than 5. The minimum expected count is 18.51.

The significance value is .000, therefore we have sufficient evidence to reject the null
hypothesis. This implies that there is a relationship between the likely patrons and type
of radio programming. The statistics show that the most common radio program for
likely patrons is either easy listening or talk/news. Clearly, Dean should make sure his
target market includes people who listen to talk/news or easy listening.

Ho: There is no relationship between “Likely Patrons” and “Most Frequent

Newscast”
H1: There is a relationship between “Likely Patrons” and “Most Frequent Newscast”
Crosstab

Which newscast do you watch most frequently?

10:00 pm
7:00 am News Noon News 6:00 pm News News Total
1 if probable .00 26 1 45 174 246
patron 1.00 6 0 84 20 110
Total 32 1 129 194 356

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 Chi-Square Tests

Asymp. Sig.
Value df (2-sided)
Pearson Chi-Square 111.916(a
3 .000
)
Likelihood Ratio 113.734 3 .000
Linear-by-Linear
17.160 1 .000
Association
N of Valid Cases
356

There is significant evidence to reject the null hypothesis because of the significance
level of .000. We can therefore conclude a relationship between “likely patrons” and
“which newscast is most frequently watched” exists. Probable patrons responded that
they typically most often watch the 6:00 pm news. Dean’s target market should include
people who watch the 6:00 pm news.

Ho: There is no relationship between “Likely Patrons” and “Most Frequent

Newspaper”
H1: There is a relationship between “Likely Patrons” and “Most Frequent
Newspaper”
Crosstab

Which section of the local newspaper would you say you read most
frequently?
Life, Health &
Editorial Business Local Classifieds Entertainment Total
1 if probable .00 19 14 113 53 76 275
patron 1.00 33 51 5 4 11 104
Total 52 65 118 57 87 379

Chi-Square Tests

Asymp. Sig.
Value df (2-sided)
Pearson Chi-Square 172.283(a
4 .000
)
Likelihood Ratio 172.986 4 .000
Linear-by-Linear
87.505 1 .000
Association
N of Valid Cases
379

Because the significance level is .000, there is enough evidence to reject the null
hypothesis and conclude that there is a relationship between “section of local
newspaper read” and likely patrons. The majority of the group who were classified as
probable patrons replied that they most often read the editorial or business sections.

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10. Use regression analysis to determine which restaurant features are related to
consumers’ likelihood of patronizing The Hobbits’ Choice Restaurant?

Model Summary

Adjusted Std. Error of

Model R R Square R Square the Estimate
1 .816(a) .666 .658 .724
a Predictors: (Constant), Prefer Jazz Combo, Prefer Large Variety of Entrees, Prefer String Quartet, Prefer
Drive Less than 30 Minutes, Prefer Waterfront View, Prefer Unusual Entrees, Prefer Unusual Desserts, Prefer
Elegant Decor, Prefer Simple Decor, Prefer Formal Waitstaff Wearing Tuxedos

Ho: all betas = 0 (none of the predictors affect “likely to patronize”)

H1: at least one beta is greater than or equal to zero

The R-squared is .666 or 2/3. This R-Squared level means that 2/3 of the variation can
be explained by the variables. Therefore, the last 1/3 of the variation is due to error.

We should reject the null hypothesis because some of the predictors have an effect on
“likely to patronize.” However, the following variables don’t have an effect on likelihood
to patronize (because their significance values are greater than .05)
drive less than 30 minutes, prefer unusual deserts and prefer string quartet.

The remainder of the variables are statistically significant in predicting “likelihood to

patronize.”

ANOVA(b)

Sum of
Model Squares df Mean Square F Sig.
1 Regression 407.129 10 40.713 77.684 .000(a)
Residual 203.868 389 .524
Total 610.998 399
a Predictors: (Constant), Prefer Jazz Combo, Prefer Large Variety of Entrees, Prefer String Quartet, Prefer
Drive Less than 30 Minutes, Prefer Waterfront View, Prefer Unusual Entrees, Prefer Unusual Desserts, Prefer
Elegant Decor, Prefer Simple Decor, Prefer Formal Waitstaff Wearing Tuxedos
b Dependent Variable: How likely would it be for you to patronize this restaurant (new upscale restaurant)?

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The predictor that is most important is “Prefer formal wait staff in tuxedos.” Its
significance value is .000 and the beta is .371. Dean would be wise to consider dressing
his wait staff in tuxedos because this is clearly valued by the patrons he is looking for.

The next most important predictor is “Prefer Simple Décor.” The significance value is
.000 and the beta is -.350. The beta is negative, meaning that the predictor has a
negative effect on likelihood to patron. “Prefer Elegant Décor”, however, has a beta of
.201. The significance value for elegant décor is .018 which makes it still significant.
Clearly, Dean would be best off decorating with Elegant Décor instead of Simple Décor.

“Prefer large variety of entrees” is also a high predictor of likelihood to patronize, it has a
significance value of .000. The beta is -.242. The beta of -.242 shows that it is
negatively correlated with “likelihood to patronize.”

The predictor for “preferring a waterfront view” is significant with a p value of .003, and a
beta of .194. This means that the variables are positively correlated. Essentially, it
appears that the more likely you are to be a probable patron, the more likely that you
prefer a waterfront view. When picking out a location of the restaurant, Dean would be
wise to spend the extra money for a waterfront view since his potential customers seem
to prefer it.

With type of music, the variable for string quarter produced a coefficient of .185. This
means that there was insufficient evidence to reject the null hypothesis. Jazz Combo on
the other hand has a p value of .000 which makes it statistically significant. The beta is
.121, showing again that there is a positive correlation among the variables. Dean’s
decision should be to use jazz music over a string quartet for the restaurant.

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The statistical test shows that “prefer drive less than 30 minutes” doesn’t have much
relevance on the survey respondents. The significance level (.957) shows that they did
not really prefer to drive less, and that there actually was no relationship. Therefore,
Dean shouldn’t worry much about closeness when it comes to the location of his
restaurant.

Lastly, when it comes to “unusual menu options,” there is sufficient evidence to reject
null hypothesis. The significance level is .024 for unusual entrees, the beta is .174
(there is a positive correlation.) On the other hand, unusual desserts’ significance level
is .192. So there isn’t a reason to think that there is a relationship between unusual
desserts and likelihood of patronizing. From this we can conclude that when Dean is
selecting choices for the menu, he should focus on the unusual entrees. Consumers
seem to prefer unusual entrees but not necessarily unusual desserts.

34