Question 17.19

17.19 Tipping behavior in Canada.

The Consumer Report on Eating Share Trends (CREST) contains data that cover all provinces of Canada and that describe away-from-home food purchases by roughly 4000 households per quarter. Researchers recently restricted their attention to restaurants at which tips would normally be given.4 From a total of 73,822 observations, “high” and “low” tipping variables were created based on whether the observed tip rate was above 20% or below 10%, respectively. They then used logistic regression to identify explanatory variables associated with either “high” or “low” tips. Here is a table summarizing what they termed the stereotype-related variables for the high-tip analysis:

Explanatory variable Odds ratio
Senior adult 0.7420*
Sunday 0.9970
English as second language 0.7360*
French-speaking Canadian 0.7840*
Alcoholic drinks 1.1250*
Lone male 1.0220

The starred odds ratios were significant at the 0.01 level. Write a short summary explaining these results in terms of the odds of leaving a high tip.

17.19

Those who order alcoholic drinks are 12.5% more likely (or 1.125 times as likely) to leave a high tip than those who don't order alcohol. Senior adults are about 25.8% less likely (or 0.742 times as likely) to leave a high tip than those who aren't senior. Those who speak English as a second language are about 26.4% less likely (or 0.736 times as likely) to leave a high tip than their counterparts. Those who are French-speaking Canadians are about 21.6% less likely (or 0.784 times as likely) to leave a high tip than those who aren't French-speaking Canadians.