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 the center of New York City and in an outlying area 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.

Source: Extracted from Zagat Survey 2016, New York City

a. Construct a scatter plot.

b. Assuming a linear 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 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?