The document summarizes research conducted at a restaurant to determine what factors influence tip amounts. It was found that the gender of the patron and time of day eating (lunch vs. dinner) had an influence on tip amounts, with men tipping more than women on average and dinner tips being higher than lunch tips. Other factors like day of week, smoker/non-smoker status, and party size were found to have little influence on tip amounts. The manager concluded servers should alternate lunch and dinner shifts as well as weekend/weekday shifts to help equalize tip earnings.

1. Topic: Restaurant Tipping Presented by: Miranda Lazar & Kristyn Kelly

2. 2003 sales at restaurants totaled $151 Billion Assuming 15% tipping, waiters and waitresses earned $22.7 billion in tip income

3. Research shows that tip percentages are weakly related to customers’ rating of service quality Tips may be influence by many factors Size of the party Table location in the restaurant Gender Smokers vs. non smokers Time of the day (Lunch vs. Dinner)

4. Restaurant located in a suburban shopping mall Server collected data during an interval of two & a half months Gender (0=male, 1=female) Smoker (0=no, 1=yes) Day of the week (3=Thursday, 4=Friday, 5=Saturday, 6=Sunday) Time of day (0=day, 1=night) Size of the party Manager believed that the data would provide a means of assessing what sorts of things affect tips and whether they were seen as objective

5. Total bills range from $3.07 to $50.81 Mean of Total bills = $19.79 $50.81 $3.07

6. Men

7. May be skewed do to more men were apart of the research than women 157 men vs. 87 women

8. SAMPLE HYPOTHESIS TESTS hyp value sample mean stdev sample size for the mean REF =average() =stdev() =(n) NULL :  Null statement ALTERNATIVE:  Alternative statement test statistic (obs) =standardize(sample mean, ref value, std error(stdev/sqrt(n)) critical measure =normsinv(1-signif level/#tails) one-tailed or two-tailed? 1 |OBS| > CRIT? p-value =(#tails)*(normsidst(abs(obs)))  -level 0.050 p-value <  -level?

9. HYPOTHESIS TESTS hypothesized value sample mean stdev sample size for the mean 3.00 3.09 1.49 157 NULL :  Men are better tippers than women ALTERNATIVE:  Men are not better tippers than women test statistic (obs) .7540843 critical measure 1.6448535 one-tailed or two-tailed? 1 |OBS| > CRIT? no p-value 0.225  -level 0.050 p-value <  -level? no ACCEPT THE NULL

10. Men are better tippers than women!

12. HYPOTHESIS TESTS hypothesized value sample mean stdev sample size for the mean 3.00 3.10 1.44 176 NULL :  people tip more than the average tip at dinner time ALTERNATIVE:  people tip less than the average tip at dinner time test statistic (obs) 0.94836 critical measure 1.64485 one-tailed or two-tailed? 1 |OBS| > CRIT? no p-value 0.171  -level 0.050 p-value <  -level? no ACCEPT THE NULL

13. People tip more than average at dinner time!

18. Gender of patron has an influence over the amount of tip Men tip an average of $3.09 Women tip an average of $2.83 Time of day has an influence over the amount of tip Lunch tip average $2.72 Dinner tip average $3.10

19. Little or no influence over tip amount Day of Week Sat & Sun tend to have larger total bill=larger tips Average Total Bill Sat & Sun larger total bill Smoker vs. Non-Smoker Very little difference $2.99 avg. vs. $3.00 avg. Size of Party

20. Have servers alternate from lunch and dinner shifts so there is more opportunity for equal tip earnings. Because average total bills tend to be larger on weekends equaling larger tips, also alternate days of week that servers work for opportunity to earn equal tips. Add gratuity to the bottom line or explain that gratuity is not included.