Food for Fork - Prospects of the New Restaurant - Research Paper Example

The paper “Food for Fork - Prospects of the New Restaurant” is an actual variant of a marketing research paper. There are hosts of factors that one needs to consider before opening up a new business entity. Present managers, business people as well as prospectus entrepreneurs need to make rational decisions. One approach to accomplish this is through statistics which help managers and business people to be more confident when dealing with unpredictable future. Playing with numbers allows managers to make quicker and smarter decisions (Malhotra, 2010). This paper is a report aimed at helping Michael Jenkins who is planning to open his own restaurant.

Although Jenkins has somehow learned about how a restaurant operates, he lacks reliable information in regards to issues of demands, the way to promote the business, what predicts the monthly expenditure in restaurants, the design of the restaurant, the location of the restaurant among others. It is the purpose of this report to help Jenkins establish relevant facts regarding the previously mentioned issues. This will be attained by using SPSS to analyze the data provided where the univariate, bivariate, and multivariate analysis will be performed. After analysis, a suitable presentation will be done and a summary of the same as well as recommendation succinctly presented. Among the techniques that will be used and justified include correlation, regression, one-way t-test, paired sample t-test, independent t-test to mention but a few.

Question 1

H0: < $19
H1: ≥ $19

In order to test the hypothesis, a one-sample hypothesis test was utilized. The method was chosen because the standard deviation is not known.

Table 1 One-Sample descriptive statistics

N

Mean

Std. Deviation

Std. Error Mean

What would you expect an average evening meal to be priced?

400

19.2300

7.55943

.37797

From the analysis, the sample mean is 19.23 while the standard deviation is 7.56 meaning that the average amount expected by the respondents for the evening meal to price ranged between $11.67 and $26.79 (Table 1). Testing at 95% confidence interval the two-tailed p-value is 0.001 and since the test was a one-tailed test, the p-value is 0.001/2=0.0005. Since t=3.254 and df=399 and p=0.0005, the null hypothesis is supported (Table 2). It can then be reasonably concluded that the average amount that respondents are capable and willing to spend on entrees slightly above the predicted amount of $19. For this reason hence the null hypothesis not supported.

Table 2 One-Sample Test

Test Value = 18

t

df

Sig. (2-tailed)

Mean Difference

95% Confidence Interval of the Difference

Lower

What would you expect an average evening meal to be priced?

3.254

399

.001

1.23000

.4869