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 NewYork City and in a suburb of NewYork City. Develop a regression model to predict the price per person, based on a variable that represents the sum of the ratings for food, décor, and service.
a. Construct a scatter plot.
For these data, b0 = - 28.1975 and b1 = 1.2409.
b. Assuming a linear cost relationship, use the least-squares method to compute the regression coefficients b0 and b1.
c. Interpret the meaning of the Y intercept, b0, and the slope, b1, in this problem.
d. Predict the cost per person for a restaurant with a summated rating of 50.