Question C

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. 90- 90- 90- 90- 90 90 90 Rating Rating Rating Rating b. Assuming a linear relationship, use the least-squares method to compute the regression coefficients bo and by . bo = - 30.18 and b, = 1.27 (Round to two decimal places as needed.) C. Interpret the meaning of the Y-intercept, bo, and the slope, by - Choose the correct answer below. O A. A practical interpretation of the Y-intercept bo is not meaningful because no operating restaurant is likely to have a rating of zero. The slope b, implies that for each increase of 1 in the summated rating, the cost per person is expected to increase by the value of by , in dollars. O 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, by, implies that for each increase of 1 in the summated rating, the cost per person is expected to decrease by by, in dollars. O C. 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 b, dollars. O D. 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, by, implies that for each increase of 1dollar in the cost per person, the summated rating is expected to increase by by