A magazine publishes restaurant ratings for various locations around the world.

Question

A magazine publishes restaurant ratings for various locations around the world. The magazine rates the restaurants for food, decor, service, and the cost per person. Develop a regression model to predict the cost per person, based on a variable that represents the sum of the three ratings. The magazine has compiled the accompanying table of this summated ratings variable and the cost per person for 25 restaurants in a major city. Complete parts (a) through (e) below Click the icon to view the table of summated ratings and cost per person. a. Construct a scatter plot. Choose the correct graph below. B. oc. D. Cost (3) Cost (S) Cost (S) Cost ($) 90 90 90 90 b. Assuming a linear relationship, use the least-squares method to compute the regression coefficients bo and b bo= -28.48 and b1= 1.24 Round to two decimal places as needed.) c. Interpret the meaning of the Y-intercept, bo, and the slope, b1. Choose the correct answer below. XA. The Y-intercept, bo. implies that if the summated rating of a restaurant is zero, the cost per person is bo, in dollars. The slope, by, implies the average cost per person is b1 dollars. B. The Y-intercept, bo, implies that if the summated rating of a restaurant is zero, the cost per meal is equal to bo. in dollars. The slope, b1. implies that for each increase of 1 in the summated rating, the cost per person is expected to decrease bv b..in dollars.

Explanation / Answer

Part A and B are correct.

Part C : Here option D is correct as there is no Zero summated rating possible. Here, as these rating increase by one point, the cost per person increase by the B1 value.

Part D : y^ = -28.48 + 1.24 * x = -28.48 + 40 * 1.24 = $21.12 per person

Part E : Here for part E , we can say option A is correct as the higher summated rating leads higher cost per person at that perticular restaurent.

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