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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.
Test Statistic
A value derived from sample data used in hypothesis testing to determine whether to reject the null hypothesis.
Null Hypothesis
A statistical hypothesis that assumes no significant difference or effect exists between specified populations or parameters.
Alternative Hypothesis
A hypothesis that contradicts the null hypothesis by stating there is a statistically significant effect or relationship between variables.
Null Hypothesis
A default hypothesis that there is no significant difference or effect, used as a starting point for statistical hypothesis testing.
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