Zagat restaurant guides publish ratings of restaurants for many large cities around the world. The restaurants are rated on a 0 to 30 point scale based on quality of food, decor, service, and cost. Suppose the regression equation that predicts the cost of dinner using the rating of the quality of food for the restaurants in a particular city is (cost of dinner) = 3.64*(food quality) + 2.77. If a restaurant in the city was given a Zagat rating of 27 and the average cost of dinner there is $74.35, what is the residual? Question 4 options: 1) 26.7 2) -74.05 3) -26.7 4) -47.35
Correlation
Correlation defines a relationship between two independent variables. It tells the degree to which variables move in relation to each other. When two sets of data are related to each other, there is a correlation between them.
Linear Correlation
A correlation is used to determine the relationships between numerical and categorical variables. In other words, it is an indicator of how things are connected to one another. The correlation analysis is the study of how variables are related.
Regression Analysis
Regression analysis is a statistical method in which it estimates the relationship between a dependent variable and one or more independent variable. In simple terms dependent variable is called as outcome variable and independent variable is called as predictors. Regression analysis is one of the methods to find the trends in data. The independent variable used in Regression analysis is named Predictor variable. It offers data of an associated dependent variable regarding a particular outcome.
Zagat restaurant guides publish ratings of restaurants for many large cities around the world. The restaurants are rated on a 0 to 30 point scale based on quality of food, decor, service, and cost. Suppose the regression equation that predicts the cost of dinner using the rating of the quality of food for the restaurants in a particular city is (cost of dinner) = 3.64*(food quality) + 2.77. If a restaurant in the city was given a Zagat rating of 27 and the average cost of dinner there is $74.35, what is the residual?
Question 4 options:
1) 26.7
2) -74.05
3) -26.7
4) -47.35
5) 47.35
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