A study was recently performed by the Internal Revenue Service to determine how much tip income waiters and waitresses should make based on the size of the bill at each table.A random sample of bills and resulting tips were collected and the following regression results were observed:
SUMMARY OUTPUT Given this output,the point estimate for the average tip per dollar amount of the bill is approximately $0.21.

Question

A study was recently performed by the Internal Revenue Service to determine how much tip income waiters and waitresses should make based on the size of the bill at each table.A random sample of bills and resulting tips were collected and the following regression results were observed:
SUMMARY OUTPUT  Given this output,the point estimate for the average tip per dollar amount of the bill is approximately $0.21.

Quizplus · Accepted Answer

The coefficient for the Bill variable in the regression is 0.21, which represents the estimated average increase in tip amount for every additional dollar on the bill. Therefore, the point estimate for the average tip per dollar amount of the bill is indeed approximately $0.21.

A Study Was Recently Performed by the Internal Revenue Service