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Tipping behavior in Canada. The Consumer Report on Eating Share Trends (CREST) contains data spanning all provinces of Canada and detailing 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.

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. The following table summarizes what they termed the stereotype-related variables for the low-tip analysis:

Explanatory Variable

Odds ratio

Senior adult

1.099

Sunday

1.098

English as second language

1.142

French-speaking Canadian

1.163

Alcoholic drinks

0.713

Lone male

0.858

All coefficients were significant at the 0.01 level. Write a short summary explaining these results in terms of the odds of leaving a low tip.

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  • Category:- Statistics and Probability
  • Reference No.:- M92240441

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