Team members:

Mohammed Muinudheen fk-3036

Gopika Krishanan fk-2986

Amal Mathews fk-2999

Josmy Joseph fk-2998

Abeesh K fk-2954

Saju Mon RD fk-2828

Q.1

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:

Initial Cluster Centers

Cluster
1 2 3
Monthly value of the bill 70000.00 6000.00 60000.00
Monthly income of the
200000.00 20000.00 150000.00
customer

High Low Medium

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:

Number of Cases in each

Cluster

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

Cluster Error F Sig.

Mean Square df Mean Square df

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

Model Sum of Squares df Mean Square F Sig.

7134180124.59 7134180124.59
Regression 1 584.434 .000b
6 6

1 Residual 122069875.404 10 12206987.540

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

Model R R Adjusted Std. Error of Change Statistics

Square R Square the Estimate R Square F Change df1 df2 Sig. F Change
Change

1 .992a .983 .981 3493.84996 .983 584.434 1 10 .000

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

Model Unstandardized Standardized t Sig. Correlations

Coefficients Coefficients

B Std. Error Beta Zero-order Partial Part

(Constant) 1961.394 1608.407 1.219 .251

1 Monthly income of
.360 .015 .992 24.175 .000 .992 .992 .992
the customer
Regression equation = y=α+βx

y= Bill value
α= constant= 1961.394
β=.360
x= monthly income

Bill value Monthly income y=α+βx

70000 190000 70361.39
6000 20000 9161.39
23000 50000 19961.39
60000 150000 55961.39
9000 30000 12761.39
25000 54000 21401.39
8000 25000 10961.39
25000 55000 21761.39
70000 200000 73961.39
7000 22000 9881.39
62000 170000 63161.39
22000 45000 18161.39

Interpretation:
There exist a direct relationship between monthly income of customer and their bill amount.