What is the scale factor?

Which approach to the theory-and-research cycle does the following sequence reflect: (1) specific observations suggest generalizations, (2) generalizations produce a tentative theory, (3) the theory is tested through the formation of hypotheses, and (4) hypotheses may provide suggestions for additional observations?

You are at a restaurant and owe $56.20 for your meal. you want to leave an 18% tip. approximately how much is your tip?

A50% increase followed by 33 1/2% decrease