Question
A magazine publishes restaurant ratings for various locations around the world. The magazine rates the restaurants forfood, d ecor, service, and the cost per person.
A magazine publishes restaurant ratings for various locations around the world. The magazine rates the restaurants forfood, decor, service, and the cost per person. Develop a regression model to predict the cost perperson, 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.
Summated_Rating Cost_($_per_person)
52 40
70 51
68 60
66 61
67 44
61 39
55 44
64 42
51 34
47 34
53 39
50 36
76 84
62 52
53 38
50 36
57 34
44 26
56 39
56 44
63 62
63 62
53 29
72 49
66 46
Assuming a linearrelationship, use theleast-squares method to compute the regression coefficients b0 and b1. Round to 2 decimal points as needed.
Predict the mean cost per person for a restaurant with a summated rating of 50.
What should you tell the owner of a group of restaurants in this geographical area about the realtionship between the summated rating and the cost of a meal?
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