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Simon’s restaurant has 5 locations across the town. It was interested in evaluating the effect of two different promotions.

INSTRUCTIONS TO CANDIDATES
ANSWER ALL QUESTIONS

Q1:  Simon’s restaurant has 5 locations across the town. It was interested in evaluating the effect of two different promotions. In each of their restaurant locations, they first gave out free appetizer to attract customers. After a week, they replaced the free appetizer with free dessert. Table below shows the total number of visitors for their restaurants. If Simon’s restaurant wants to attract customers going forward, should it give out (i) free appetizer, (ii) free dessert, or (iii) it can give either one because there’s no significant difference between the two?  Please explain your answer and also attach a screenshot of your SPSS output to show your work. [5 marks]

 

Number of customers during the promotion

Free Appetizer Free Dessert

Location A 200 Location A 300

Location B 100 Location B 70

Location C 300 Location C 310

Location D 200 Location D 200

Location E 250 Location E 255

 

 

Q2: TELUS Mobility just launched a 5G unlimited data plan and promoted to its cellphone subscribers. Conduct a chi-square test to determine whether there is a relationship between gender and rate plan upgrade (both nominal variables). Below is the table documenting the data about gender and subscribers’ respective behavior:   [5 marks]

Gender Upgrade to 5G Unlimited Data Plan Did not upgrade to 5G Unlimited Data Plan Total

Male 40 91 131

Female 90 45 135

Total 130 136 266

 

 

 

Q3. 

Peter Kim is the store manager at Bubble Heaven, a Bubble tea shop in Toronto. Peter is trying to predict how many cups of bubble tea he can sell next week, so that he can stock up the ingredients and cups accordingly to avoid an out-of-stock situation. 

From his past experience, bubble tea consumption is affected by 3 major factors: temperature, rain, and wind. He collected such data from the week before:

 

Temperature (°C) Rain (mm) Wind (km/h)    Bubble tea (cups)

Sunday 20 20 10 100

Monday 10 2 12 130

Tuesday 3 20 10 20

Wednesday -8 0 8 10

Thursday -9 2 8 15

Friday -2 1 10 20

Saturday 0 0 40 50

 

Peter checked the weather forecast for next week and received the following information. Now, use your MRK455 knowledge about multiple linear regression to help Peter to figure out how many cups of bubble tea he will sell everyday next week. Please round up your numbers. Also, Simon intends to close down this shop for just 1 day next week to perform some minor repairs in the restaurant’s washroom. What day should he close his shop to minimize revenue loss, based on the sales forecast? [5 marks]

 

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