# Zagats publishes restaurant ratings for various locations in the United States. The file Restaurants contains the Zagat

## Question:

Zagat’s publishes restaurant ratings for various locations in the United States. The file Restaurants contains the Zagat rating for food, décor, service, and the cost per person for a sample of 100 restaurants located in New York City and in a suburb of New York City. Develop a regression model to predict the cost per person, based on a variable that represents the sum of the ratings for food, décor, and service. Sources: Extracted from Zagat Survey 2013, New York City Restaurants; and Zagat Survey 2012–2013, Long Island Restaurants.

a. Construct a scatter plot. For these data, b_{0} = 46.7718 and b_{1} = 1.4963.

b. Assuming a linear relationship, use the least squares method to compute the regression coefficients b_{0} and b_{1}.

c. Interpret the meaning of the Y intercept, b_{0}, and the slope, b_{1}, in this problem.

d. Predict the mean cost per person for a restaurant with a summated rating of 50.

e. What should you tell the owner of a group of restaurants in this geographical area about the relationship between the summated rating and the cost of a meal?

## Step by Step Answer:

**Related Book For**

## Business Statistics A First Course

**ISBN:** 9780321979018

7th Edition

**Authors:** David M. Levine, Kathryn A. Szabat, David F. Stephan