Great

Steak

StephensonGokingco
Statistics
Period0B
DateSubmitted:5/19/16
SchoolYear:20152016

Abstract

ThefollowinganalyticalreportfeaturesstatisticalanalysesdoneonrandomlyselectedsteakhousesinAustin,Texas.
Theseanalysesfocusedonbothquantitativeandcategoricalvariablesandwhetherornottheywouldcontributeto
therespectiveestablishmentsoverallsuccess.Therewerenostatisticallysignificantresults.

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TableofContents

Introduction2

StatisticalAnalyses.3

Conclusion..6

WorksCited7

Appendices..8
InquiryPitch....14

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Introduction
DeterminingfactorsrelatedtotheindicatedsuccessofasteakhouseinAustinisthe
generalinquiryofthisentirereport.Nobackgroundresearchwasconductedtogeneratethis
inquiryotherthanthatthecomplexitiesoftherestaurantbusinesswillalwaysbepresentinany
societyinanytimeperiod.Theresreallynomeaninginthisreporttotheaverageperson,asthe
averagepersonisgenerallyaconsumeratanyoneoftheseestablishments.Aspiringrestaurant
owners/entrepreneursoranyoneelsewantingtopursueacareerinfoodservicescanextract
meaningbehindthisreportsresultsbecauseitdealswithsuccessfulbusinessbuilding.There
isntaformal,mainhypothesisfortheoverallinquiryrather,therearesmaller,several
hypothesesthatallservetheirrespectivevariablesandrelationshipsbetweenvariables.The
populationofinterestisallsteakhouses,chainornot,inAustin,Texas.Thesesteakhousescan
serveasmodelsforotherrestaurantsuccess,andtheselectionofthisspecifictypeofrestaurant
helpedspecializeandfocustheproject.

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StatisticalAnalyses
ThepopulationfromwhichthesamplewastakenwasallAustinsteakhouses.The
samplingframewasallAustinsteakhousesthatwerelistedonGooglemapsandhadYelp
reviewsassociatedwiththebusiness.GooglealreadygeneratedarandomlistofAustin
steakhousesduetotherebeingnopatternintheorderingoftherestaurantsinregardtoregion,
reviews,size,etc.15steakhousesweresampledgoingdownthelisttakingintoconsideration
whetherthebusinesspickedupthephoneorwereopenatthetimetheywerecalled.Onereason
whythesamplemaynotberepresentativeofthepopulationisthatnonresponsebiasdidtake
place.Somerestaurantsdidnotpickup,andotherrestaurantspreferrednottoanswersomeof
thesurveyquestionsprovided.
Aseriesoffourregressionslopetestswereconductedonthefourquantitativevariables
gatheredfromeachofthe15steakhouses:waitingroom/areacapacity,numberofstaff,Google
reviews,andYelpreviews.Theslopeoftheregressionlinewascalculatedforeachcorrelation
scatterplot,andthetestdeterminedwhetherornotthatslopewasstatisticallysignificant(not
zero).Oneoftheassumptionsforthistypeoftestisthatthedependentvariable(Yelpand
Googlereviews)isroughlynormallydistributed.Accordingtothefollowinghistograms,that
appearstobethecase:

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Additionally,thescatterplotsshowthatthereareslightlinearrelationshipsbetweenthe
quantitativevariablesbeingcompared:

Eachrespectivenullhypothesisisthattheslopeoftheregressionisnotsignificant(zero),and
thealternativehypothesisistheoppositescenario.Analphavalueof0.05willbeuseddueto
howitsastandardinmoststatistics.Noneofthepvaluesfellbelowthealphavaluetherefore,
foreachquantitativevariablepair,failtorejectthenullhypothesisthattheregressionlineslope
iszero.Itisimportanttonotethatthesmallestpvaluewasapproximately0.17,andthiswasfor
comparingthelinearrelationshipbetweennumberofstaffandYelpreviewscores.
Twoadditionalindependentttestswereconductedtotakeintoaccountthebinary
categoricalvariablescollectedinthesurvey.Theonlyquantitativevariablebeinglookedatwas
YelpreviewscoresduetohowitsamorereliablequantitythanGooglereviews.Thetwo

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categoricalvariablesthataredeterminingthetwoindependentgroupsbeingcomparedare
whetherornottherestaurantregularlyoffersthebluesteaktemperatureandwhetherornotthe
steakhouseregularlyservescomplimentaryitemsbeforetheactualmeal.Theassumptionthatthe
sampleismadeupofrandomandindependentobservationshasbeenmet.TheNormality
assumptionhasnotbeenmetforeithertestbecausethesamplesizesarejusttoosmallto
determinetheexactskewofthedistributions.Therefore,itisimportanttoproceedwithcaution
withtheconductingofthistest.Again,analphavalueof0.05willbeused,asitisstandard.
However,becausebothtestsarenondirectional,thealphavalueissplitintwointo0.025.The
ttestcomparingtheYelpreviewmeansbetweenbluesteakhousesandnonbluesteakhouses
yieldedapvaluewayabovethealphavalue,whichwasapproximately0.95.Theothertest,
however,yieldedamuchlowerpvalueof0.08,indicatinganalmostsignificantfinding.This
definitelycallsforfurtherinquiryastotheexactrelationshipbetweensuccessofasteakhouse
duetoitscomplimentaryitemstatus.Becausebothpvaluesaregreaterthanthealphavaluesfor
bothtests,failtorejectthenullhypothesisthatthemeanYelpscoredifferenceamongboth
respectivegroupsiszero.

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Conclusion
Eventhoughnoneofthevariablesyieldedasignificantresult,thisreportisstillvaluable
informationastoansweringthequestionofwhat
doesnt
contributetoasteakhousessuccess.
Someofthestatisticaltestswereclosetobeingsignificant,andthatssomethingtotakenoteof,
especiallywhenconsideringconductingfuturetests.Onebigimprovementthatcouldbemadeis
toincreasethesamplesizeforfuturetests,andseeinghowthisaffectsthepvaluesonthecusp
ofbeingsignificantwouldbeofvalue.Theresalsoproprietaryinformationouttherethatwasnt
accessibleforthisreport,butthisinformationisthebestindicatorofsuccessthatsnotpopular
opinion.Ultimatelyknowingwhatdoesandwhatdoesnotcontributetoanybusinessessuccess
isvaluableinformation,andthisanalyticalreportaccomplishedthatpurpose.

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WorksCited
Roberts,Adam."WhatMakesAGreatSteakhouseAmateurGourmet."
WhatMakesAGreat
SteakhouseAmateurGourmet
.AdamRoberts,11Feb.2009.Web.15May2016.

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Appendices
>##########FINALSTATSPROJECT##########
>#####STARTHERE#####
>#regressionslopetestforwaitingYelp
>waitYelp.lm=lm(Yelp~Waiting,data=steak)
>summary(waitYelp.lm)#notsignificant

Call:
lm(formula=Yelp~Waiting,data=steak)

Residuals:
Min1QMedian3QMax
0.87870.33790.19660.22450.7167

Coefficients:
EstimateStd.ErrortvaluePr(>|t|)
(Intercept)3.66486030.148798224.6302.71e12***
Waiting0.00092360.00167630.5510.591

Signif.codes:0***0.001**0.01*0.05.0.11

Residualstandarderror:0.4957on13degreesoffreedom
MultipleRsquared:0.02282, AdjustedRsquared:0.05235
Fstatistic:0.3036on1and13DF,pvalue:0.591

>#scatterplot
>plot(steak$Waiting,steak$Yelp,main="WaitingCapacityvs.YelpScores",ylab="YelpScores",
xlab="WaitingCapacity")
>abline(lm(steak$Yelp~steak$Waiting),col='red')
>
>#regressionslopetestforwaitingGoogle
>waitGoogle.lm=lm(Google~Waiting,data=steak)
>summary(waitGoogle.lm)#notsignificant

Call:
lm(formula=Google~Waiting,data=steak)

Residuals:
Min1QMedian3QMax
0.605080.167140.006980.200200.40608

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Coefficients:
EstimateStd.ErrortvaluePr(>|t|)
(Intercept)4.09301650.085766147.7235.48e16***
Waiting0.00030160.00096620.3120.76

Signif.codes:0***0.001**0.01*0.05.0.11

Residualstandarderror:0.2857on13degreesoffreedom
MultipleRsquared:0.007437, AdjustedRsquared:0.06891
Fstatistic:0.09741on1and13DF,pvalue:0.7599

>#scatterplot
>plot(steak$Waiting,steak$Google,main="WaitingCapacityvs.GoogleReviewsScores",
ylab="GoogleScores",xlab="WaitingCapacity")
>abline(lm(steak$Google~steak$Waiting),col='red')
>
>#regressionslopetestforstaffGoogle
>staffGoogle.lm=lm(Google~Staff,data=steak)
>summary(staffGoogle.lm)#notsignificant

Call:
lm(formula=Google~Staff,data=steak)

Residuals:
123456789
2.000e011.500e015.000e026.939e181.000e011.500e012.082e176.939e18
5.000e02
101112131415
1.000e012.082e176.939e183.469e172.000e013.469e17

Coefficients:
EstimateStd.ErrortvaluePr(>|t|)
(Intercept)4.25000.136931.0386.42e06***
Staff1050.25000.23721.0540.3513
Staff1100.05000.23720.2110.8433
Staff350.45000.23721.8970.1306
Staff400.10000.19360.5160.6328
Staff500.25000.19361.2910.2663
Staff540.75000.23723.1620.0341*
Staff620.35000.23721.4760.2141

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Staff650.15000.19360.7750.4818
Staff700.15000.23720.6320.5614
StaffN/A0.25000.23721.0540.3513

Signif.codes:0***0.001**0.01*0.05.0.11

Residualstandarderror:0.1936on4degreesoffreedom
MultipleRsquared:0.8597,

AdjustedRsquared:0.509

Fstatistic:2.452on10and4DF,pvalue:0.2009

>#scatterplot
>plot(steak$Staff,steak$Google,main="NumberofStaffvs.GoogleReviewsScores",ylab="Google
Scores",xlab="NumberofStaff")
>abline(lm(steak$Google~steak$Staff),col='red')
Warningmessage:
Inabline(lm(steak$Google~steak$Staff),col="red"):
onlyusingthefirsttwoof11regressioncoefficients
>
>#regressionslopetestforstaffYelp
>staffYelp.lm=lm(Yelp~Staff,data=steak)
>summary(staffYelp.lm)#notsignificant

Call:
lm(formula=Yelp~Staff,data=steak)

Residuals:
123456789
1.500e013.500e012.500e012.082e171.110e163.500e011.110e166.939e18
2.500e01
101112131415
1.180e162.082e172.082e175.551e171.500e016.939e18

Coefficients:
EstimateStd.ErrortvaluePr(>|t|)
(Intercept)3.85000.227816.9047.18e05***
Staff1050.15000.39450.3800.7231
Staff1100.05000.39450.1270.9053
Staff351.05000.39452.6620.0563.
Staff400.30000.32210.9310.4044
Staff500.80000.32212.4840.0679.
Staff540.65000.39451.6480.1748

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Staff620.15000.39450.3800.7231
Staff650.05000.32210.1550.8842
Staff700.35000.39450.8870.4251
StaffN/A0.05000.39450.1270.9053

Signif.codes:0***0.001**0.01*0.05.0.11

Residualstandarderror:0.3221on4degreesoffreedom
MultipleRsquared:0.8731,

AdjustedRsquared:0.5557

Fstatistic:2.751on10and4DF,pvalue:0.1708

>#scatterplot
>plot(steak$Staff,steak$Yelp,main="NumberofStaffvs.YelpScores",ylab="YelpScores",
xlab="NumberofStaff")
>abline(lm(steak$Yelp~steak$Staff),col='red')
Warningmessage:
Inabline(lm(steak$Yelp~steak$Staff),col="red"):
onlyusingthefirsttwoof11regressioncoefficients
>
>#histogramsofGoogleandYelpreviews
>hist(steak$Google,main="DistributionofGoogleScores",xlab="GoogleScores")
>hist(steak$Yelp,main="DistributionofYelpScores",xlab="YelpScores")
>
>#independentttestamongcompitems
>#makeavectorofYelpscoresforeachsample
>compYelp<steak$Yelp[steak$Comp=='Y']
>nocompYelp<steak$Yelp[steak$Comp=='N']
>#checkNormalityassumption(samplesizeswaytoosmall,proceedwithcaution)
>#runttest
>t.test(compYelp,nocompYelp)

WelchTwoSamplettest

data:compYelpandnocompYelp
t=1.8697,df=12.792,pvalue=0.08458
alternativehypothesis:truedifferenceinmeansisnotequalto0
95percentconfidenceinterval:
0.605715390.04417692
sampleestimates:
meanofxmeanofy
3.6692313.950000

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>
>#independentttestamongbluesteak
>#makevectorofYelpscoresforeachsample
>blueYelp<steak$Yelp[steak$Blue=='Y']
>noblueYelp<steak$Yelp[steak$Blue=='N']
>#checkNormalityassumption(samplesizeswaytoosmall,proceedwithcaution)
>#runttest
>t.test(blueYelp,noblueYelp)

WelchTwoSamplettest

data:blueYelpandnoblueYelp
t=0.067,df=12.719,pvalue=0.9476
alternativehypothesis:truedifferenceinmeansisnotequalto0
95percentconfidenceinterval:
0.55532090.5219875
sampleestimates:
meanofxmeanofy
3.7000003.716667

Blue
Steak?
(Y/N)

Waiting
Room
Capacity

Complimentary Busiest
Items?(Y/N)
Times

Number Google Yelp

ofStaff Reviews Reviews

Steakhouse1 Y

20

6:308:30

50

4.2

3.2

Steakhouse2 Y

10

113

100

4.4

4.2

Steakhouse3 N

20

6:308

40

4.3

3.9

Steakhouse4 Y

40

11:301:30
5:458

54

3.5

3.2

Steakhouse5 N

6:308

65

4.5

3.9

Steakhouse6 Y

30

6:308:30

100

4.1

3.5

Steakhouse7 Y

30

78:30

N/A

4.0

3.9

Steakhouse8 Y

15

78

35

3.8

2.8

Steakhouse9 Y

20

69

40

4.4

4.4

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Steakhouse
10

25

6:458:15

65

4.3

3.9

Steakhouse
11

150

11:301:30
58

105

4.0

4.0

Steakhouse
12

10

12:301:30
6:308:30

62

3.9

3.7

Steakhouse
13

300

69
29

110

4.3

3.9

Steakhouse
14

47

50

3.8

2.9

Steakhouse
15

78

70

4.1

4.2

Thefollowinglististhesteakhousesthatparticipatedinthisstatisticalobservationalstudy.Inno
particularorder:LonghornSteakhouse,Perrys,IIIForks,OutbackSteakhouse,Flemings,
SteinerRanch,VinceYoung,TexasLandandCattle,EddieVs,Bobs,Bartletts,Saltgrass,
TexasRoadhouse,McCormick,andTheCapitalGrille.

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StephensonGokingco
Mr.Crow
D/CStatisticsPeriod0B
22May2016
GreatSteak:InquiryPitch

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Myproposedinquiryaskswhatfactors(intermsofquantitativeandcategoricalvariables)
arerelatedtoasteakhousesoverallsuccessinAustin,Texas.Whenitcomesdowntoit,there
areseveralfactorsthatleadtoanysteakhousessuccess,downtothekindoffreebreadthatthey
servebeforethemeal(Roberts1).Therelevancethatthisobservationalstudyhasonsocietyis
moreinformationonwhatmakesthistypeofbusinesstick,andperhapstheprinciplesIfindout
canbeappliedtootherrestaurantsaswell.Knowingwhatisandwhatisnotrelatedtoa
restaurantssuccessiscrucialandvitalinformationtoanyrestaurantowner.Thefactthatland,
labor,capital,andentrepreneurialabilityarealltiedtothepotentialfindingsofmyprojectmake
itallthemorerelevanttotodayandtomorrowssociety.
HowIplanonmeasuringoverallsuccessofthesteakhouseisbylookingbothat
GoogleandYelpreviewsoftheestablishment.Bothofthesequantitativevariablesshouldrange
betweenthenumbers15.ThecategoricalvariablesIllbecomparingthesequantitativevariables
towillbewhetherornotthesteakhouseservesthebluesteaktemperatureandwhetherornot
thesteakhouseregularlyservescomplimentaryitemsbeforethemeal.IplanonreceivingYes
orNoanswersforthesequestions.ThequantitativevariablesIllcomparewiththereviewsare
thenumberoftotalstaffandwaitingroomcapacityofthesteakhouses.BecauseIhaventreally
doneanyresearchonthesetwovariablesassociationwithsteakhouses,Imnotsurehowto
assesstherangeorexpectedvaluesofthesediscretequantitativevariables.
GooglealreadygeneratesarandomlistofAustinsteakhousesinnoparticularorderwhen
youtypethequeryinthesearchengine.Illbegoingdownthelistandcallingeach
establishmenttoaskthemsurveyquestionsthatpertaintomyvariablesofinterest.

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Whencomparingthequantitativevariables,Illbeusingtheregressionslopetestbecause
itsthebestwayofseeingsomesortofrelationshipbetweenthetwovariables.Itwilltellmeif
theslopeofthelineofbestfitbetweenthevariablesisstatisticallysignificantfromzero.Illalso
useindependenttteststocomparegroupmeansofsteakhousereviews(Yelp)withbothofthe
binarycategoricalvariablesofinterest.Thiswillprovidemebetterinsightastohowthese
categoricalvariablesrelatetothesuccessoftherestaurant.Usingachisquaretestof
independencebetweenthetwobinarycategoricalvariableswouldntmakesense,asitwouldnot
providemewithinformationregardingthesteakhousessuccess.
BecauseImconductingasurveyoverthephonewhereIminitiatingthecontact,theres
obviouslygoingtobetheissueofnonresponsebias.AlthoughImnotaskingforanyprying,
specificproprietaryinformation,restaurantmanagers/ownersmaynotbecomfortablewith
answeringhowmanystaffmemberstheyhave,forinstance.AnotherconcernthatIhaveis
samplesizeandhowlargeitshouldbeforthepurposesofmyproject.Imaynothaveenough
timeorevensteakhousestogoaboveandbeyondfulfillingtherespectivesamplesize
assumptionsforeachhypothesistest.