Hobbits’ Choice Restaurant

Data Analysis Assignment—Hobbits’ Choice Restaurant

Jeff Dean is a restaurant supply sales representative who has always dreamed of opening his own
restaurant. He is thinking of opening a fine, upscale restaurant featuring the finest entrées, drinks, and
desserts in an elegant atmosphere, which is a type of restaurant missing from his metro area. Dean was a
fan of the author J.R.R. Tolkien, and he thought the reference to the Hobbits would be perfect in a name
for an upscale restaurant. The Hobbits, characters in Tolkien’s writings, were portrayed as good, funloving
people whose lives primarily centered around eating.
To help justify the investment costs of opening such a restaurant and to provide information for his
marketing plan, Dean conducted a marketing research study. The data from his survey are saved in the
Excel file HobbitData.xlsx.
For your data analysis project, please use evidence obtained from analysis of the dataset to address the
questions below. You may cut and paste tables from the computer output into a word processing file, but
you may not turn in a stack of printouts. Each question will be worth 10 points.
1. Perform the appropriate descriptive analysis for each question on the questionnaire and interpret
it.
2. What are the population estimates for each of the following?
a. Preference for “easy listening” radio programming
b. Viewing of 10 P.M. local news on TV
c. Average age of heads of household
d. Average price paid for an evening meal entrée
3. Because Jeff Dean’s restaurant will be upscale, it will appeal to high-income consumers. Jeff
hopes that at least 30 percent of the households have an income level of $100,000 or higher. Test
this hypothesis.
4. With respect to those who are “very likely” to patronize The Hobbits’ Choice restaurant, Jeff
believes that the will either “very strongly” or “somewhat” prefer each of the following: (a)
waitstaff with tuxedos, (b) elegant décor, and (c) jazz combo music. Does the survey support or
refute Jeff’s hypothesis? Interpret your findings.
5. Jeff wonders if The Hobbits’ Choice Restaurant is more appealing to women than it is to men or
vice versa. Perform the proper analysis, interpret it, and answer Jeff’s question.
6. With respect to the location of The Hobbits’ Choice Restaurant, is a waterfront view preferred
more than a drive of less than 30 minutes?
7. In general, upscale restaurants are appealing to higher-income households, whereas they are less
appealing to lower-income households. Is this the case for The Hobbits’ Choice Restaurant?
8. Do older or younger people want unusual desserts and/or unusual entrées?
9. Create a variable that distinguishes the “probable patrons” (likely to patronize=4 or 5) from the
“not probable patrons” (likely to patronize=1, 2, or 3). If the probable patrons constitute the
target market for Hobbits’ Choice, what is the demographic makeup of this target market? Use
crosstabulations to consider the demographics of household income, education level, gender, and
zip code. Also consider the media habits of the target market, including magazines, radio,
newscasts, and newspapers.
10. Use regression analysis to determine which restaurant features are related to consumers’
likelihood of patronizing The Hobbits’ Choice Restaurant?

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