Table 4-8 (found on the textbook's Web site) contains variables from the Los Angeles 2008 Zagat Restaurant Guide. The variables are score values out of 30, with 30 being the best. For each restaurant listed, the table provides data for four categories: food, decor, service, and average price for a single meal at the establishment.
a. Create a least squares regression model to predict Price based on the other three variables (Food, Decor, and Service). Are all the independent variables statistically significant?
b. Does the normal probability plot indicate any problems?
c. Create a scatter gram of the residual values from the model versus the fitted values of the Price estimates. Does the plot indicate the residual values have constant variance? Retain this plot for use in future chapters.