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 ANOVA 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  ANOVA   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 output is 0.2099, which represents the point estimate for the average increase in tip amount per one dollar increase in the bill amount. Therefore, the approximate point estimate for the average tip per dollar amount of the bill is $0.21.

A Study Was Recently Performed by the Internal Revenue Service