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Abeesh K fk-2954
1)Using this data, which mainly constitutes the Bill value of the customer and the average
monthly income of the customer, try to find out the segmentation of the Customer base of the
restaurant
Step 1: Cluster analysis
Analyze > Classify > K mean cluster
Step 2:
Number of clusters- 3
Step 3:
Step 4:
Step 5:
Step 6:
Figure No. 1
Interpretation:
Here we have 3 clusters, which shows the average bill value of the customer in each segment.
From the table, it can be interpreted that the average bill value is higher for cluster 1, lower for
cluster 2 and medium for cluster 3.
Step 7:
1 2.000
Cluster 2 8.000
3 2.000
Valid 12.000
Missing .000
Interpretation:
No of customers for segment 2 is higher compared to segment 1 and 3. Both cluster 1 and 3 has
same number of customers. The above figure 1 shows that monthly income levels of customers in
cluster 1 and 2 are somewhat similar but their average bill value is different. This may be due to
the lifestyle pattern of the customers in these segments are different. Around 70% of the customers
are from cluster 2.
Step 8:
ANOVA
ANOVA
3357187500.00
Monthly value of the bill 2 60208333.333 9 55.760 .000
0
Monthly income of the 26699187500.0
2 199986111.111 9 133.505 .000
customer 00
Interpretation:
ANOVA Results shows that there exist difference between the average bill value of the customers
and their monthly income.
Q2- Formulate a regression equation that can accurately predict the relationship between the
customer’s monthly income and his willingness to spend.
ANOVA
ANOVAa
7134180124.59 7134180124.59
Regression 1 584.434 .000b
6 6
7256250000.00
Total 11
0
Interpretation:
ANOVA Results shows that there exists difference between the average bill value of the customers
and their monthly income.
Model summary
Model Summary
Interpretation:
There exists a strong correlation between the two variables. The R (Regression) value is 0.992.
R square represents co-efficient of determination. Here the value is .983, which shows that one-
unit change in monthly income that is independent variable causes a one-unit change in bill value
of the customer.
Coefficients
y= Bill value
α= constant= 1961.394
β=.360
x= monthly income
Interpretation:
There exist a direct relationship between monthly income of customer and their bill amount.