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?

Zagat’s publishes restaurant ratings for various locations in the United States. the file

restaurants contain the Zagat rating for food, decor, service, and the cost per person for

a sample of 100 restaurants located in New York City and in a suburb 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, decor, and service (use the enclosed excel file:

NYC Restaurants.xlsx).

Questions:

1. Construct a scatter plot.

2. Assuming a linear relationship, use the simple linear regression method to

compute the regression coefficients b0 and b1.

3. Interpret the meaning of the Y-intercept, b0, and the slope, b1, in this problem.

4. Predict the mean cost per person for a restaurant with a summated rating of 50.

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5. 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?