13.5: For this problem, you will get separate Lines of Best Fit, one each for Center City and Metro. Show these Lines of Best Fit that you can attach as screen captures from your Excel work. You may show the values of b0 and b1 for either Center City or Metro. You may show the r2 value for either Center City or Metro. 

 

The Restaurants data is available in page 48, Table 2.3 . (Frequency Distributions for Cost of a Meal at 50 Center City Restaurants and 50 Metro Area Restaurants)

Meal Cost ($)	Center City Frequency	Metro Area Frequency
20 but less than 30	4	4
30 but less than 40	3	14
40 but less than 50	12	16
50 but less than 60	14	12
60 but less than 70	7	2
70 but less than 80	4	1
80 but less than 90	5	1
90 but less than 100	1	0
Total	50	50

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.

(a) Construct a scatter plot..

(b) Assuming a liner relationship, use the least-squares method to compute the regression coefficients .  

(c) Interpret the meaning of the Y intercept,   and the slope, , 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?

Page 499, problem 13.17

This problem is a continuation of problem 13.5 using the same data set. You may show your result either for Center City or Metro.

(a). Determine the coefficient of determination, , and intercept it’s meaning

(b). Determine the standard error of the estimate.

(c). How useful do you think this regression model is for predicting the cost of a restaurant meal?