Zagat’s publishes restaurant ratings for various locations in the United States. The following table contains the Zagat rating for food, décor, 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, décor, and service. Construct a scatter plot. For these data, b0 = - 46.7718 and b1 = 1.4963. Assuming a linear relationship, use the least- squares method to compute the regression coefficients b0 and b1. Interpret the meaning of the Y intercept, b0, and the slope, b1, in this problem. Location Food  Décor Service Summated Rating Coded Location Cost   Bins Midpoints City 22 14 19 55 0 33   19.99 25 City 20 15 20 55 0 26   29.99 35 City 23 19 21 63 0 43   39.99 45 City 19 18 18 55 0 32   49.99 55 City 24 16 18 58 0 44   59.99 65 City 22 22 21 65 0 44   69.99 75 City 22 20 20 62 0 50   79.99 85 City 20 19 19 58 0 42   89.99   City 21 17 19 57 0 44       City 20 18 18 56 0 36       City 23 22 24 69 0 61       City 20 19 20 59 0 50       City 21 19 21 61 0 51       City 24 19 21 64 0 50       City 25 23 23 71 0 76       City 22 21 21 64 0 53       City 23 15 22 60 0 44       City 26 22 24 72 0 77       City 21 23 21 65 0 57       City 24 15 19 58 0 43       City 21 15 19 55 0 29       City 23 16 16 55 0 34       City 25 21 26 72 0 77       City 22 20 21 63 0 50       City 26 25 24 75 0 74       City 23 21 21 65 0 56       City 22 19 17 58 0 67       City 26 20 23 69 0 57       City 26 23 25 74 0 66       City 24 23 24 71 0 80       City 22 23 23 68 0 68       City 24 16 23 63 0 42       City 20 17 19 56 0 48       City 25 19 23 67 0 60       City 23 20 21 64 0 35       City 21 19 22 62 0 45       City 20 16 18 54 0 32       City 23 15 18 56 0 25       City 26 24 24 74 0 74       City 21 18 18 57 0 43       City 22 16 19 57 0 39       City 19 23 21 63 0 55       City 24 19 21 64 0 65       City 23 16 20 59 0 35       City 24 26 22 72 0 61       City 21 17 18 56 0 37       City 21 17 19 57 0 54       City 23 19 22 64 0 41       City 23 19 21 63 0 33       City 23 14 19 56 0 27       Suburban 24 20 22 66 1 47       Suburban 22 18 22 62 1 48       Suburban 18 13 18 49 1 35       Suburban 22 23 20 65 1 59       Suburban 22 18 24 64 1 44       Suburban 23 25 24 72 1 51       Suburban 20 12 18 50 1 37       Suburban 19 18 19 56 1 36       Suburban 22 19 21 62 1 43       Suburban 27 21 27 75 1 52       Suburban 19 14 18 51 1 34       Suburban 22 11 19 52 1 38       Suburban 24 22 24 70 1 51       Suburban 19 15 19 53 1 34       Suburban 21 23 21 65 1 51       Suburban 21 19 21 61 1 34       Suburban 23 19 23 65 1 51       Suburban 23 20 22 65 1 56       Suburban 21 13 19 53 1 26       Suburban 24 19 22 65 1 34       Suburban 20 18 20 58 1 34       Suburban 24 22 24 70 1 44       Suburban 23 17 22 62 1 40       Suburban 23 16 21 60 1 31       Suburban 23 18 22 63 1 54       Suburban 19 12 22 53 1 41       Suburban 22 17 21 60 1 50       Suburban 26 27 24 77 1 71       Suburban 22 21 23 66 1 60       Suburban 19 15 17 51 1 37       Suburban 21 12 20 53 1 27       Suburban 26 18 22 66 1 34       Suburban 22 25 21 68 1 48       Suburban 21 21 21 63 1 39       Suburban 20 20 20 60 1 44       Suburban 22 18 22 62 1 41       Suburban 23 20 19 62 1 37       Suburban 24 21 23 68 1 47       Suburban 23 27 22 72 1 67       Suburban 24 24 22 70 1 68       Suburban 26 17 24 67 1 49       Suburban 22 22 19 63 1 29       Suburban 24 18 22 64 1 33       Suburban 20 19 20 59 1 39       Suburban 26 19 23 68 1 39       Suburban 22 15 21 58 1 28       Suburban 18 20 18 56 1 46       Suburban 26 27 25 78 1 70       Suburban 25 26 23 74 1 60       Suburban 22 25 22 69 1 52

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Zagat’s publishes restaurant ratings for various locations in the United States. The following table contains the Zagat rating for food, décor, 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, décor, and service.

  1. Construct a scatter plot. For these data, b0 = - 46.7718 and b1 = 1.4963.
  2. Assuming a linear relationship, use the least- squares 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.
Location Food  Décor Service Summated Rating Coded Location Cost   Bins Midpoints
City 22 14 19 55 0 33   19.99 25
City 20 15 20 55 0 26   29.99 35
City 23 19 21 63 0 43   39.99 45
City 19 18 18 55 0 32   49.99 55
City 24 16 18 58 0 44   59.99 65
City 22 22 21 65 0 44   69.99 75
City 22 20 20 62 0 50   79.99 85
City 20 19 19 58 0 42   89.99  
City 21 17 19 57 0 44      
City 20 18 18 56 0 36      
City 23 22 24 69 0 61      
City 20 19 20 59 0 50      
City 21 19 21 61 0 51      
City 24 19 21 64 0 50      
City 25 23 23 71 0 76      
City 22 21 21 64 0 53      
City 23 15 22 60 0 44      
City 26 22 24 72 0 77      
City 21 23 21 65 0 57      
City 24 15 19 58 0 43      
City 21 15 19 55 0 29      
City 23 16 16 55 0 34      
City 25 21 26 72 0 77      
City 22 20 21 63 0 50      
City 26 25 24 75 0 74      
City 23 21 21 65 0 56      
City 22 19 17 58 0 67      
City 26 20 23 69 0 57      
City 26 23 25 74 0 66      
City 24 23 24 71 0 80      
City 22 23 23 68 0 68      
City 24 16 23 63 0 42      
City 20 17 19 56 0 48      
City 25 19 23 67 0 60      
City 23 20 21 64 0 35      
City 21 19 22 62 0 45      
City 20 16 18 54 0 32      
City 23 15 18 56 0 25      
City 26 24 24 74 0 74      
City 21 18 18 57 0 43      
City 22 16 19 57 0 39      
City 19 23 21 63 0 55      
City 24 19 21 64 0 65      
City 23 16 20 59 0 35      
City 24 26 22 72 0 61      
City 21 17 18 56 0 37      
City 21 17 19 57 0 54      
City 23 19 22 64 0 41      
City 23 19 21 63 0 33      
City 23 14 19 56 0 27      
Suburban 24 20 22 66 1 47      
Suburban 22 18 22 62 1 48      
Suburban 18 13 18 49 1 35      
Suburban 22 23 20 65 1 59      
Suburban 22 18 24 64 1 44      
Suburban 23 25 24 72 1 51      
Suburban 20 12 18 50 1 37      
Suburban 19 18 19 56 1 36      
Suburban 22 19 21 62 1 43      
Suburban 27 21 27 75 1 52      
Suburban 19 14 18 51 1 34      
Suburban 22 11 19 52 1 38      
Suburban 24 22 24 70 1 51      
Suburban 19 15 19 53 1 34      
Suburban 21 23 21 65 1 51      
Suburban 21 19 21 61 1 34      
Suburban 23 19 23 65 1 51      
Suburban 23 20 22 65 1 56      
Suburban 21 13 19 53 1 26      
Suburban 24 19 22 65 1 34      
Suburban 20 18 20 58 1 34      
Suburban 24 22 24 70 1 44      
Suburban 23 17 22 62 1 40      
Suburban 23 16 21 60 1 31      
Suburban 23 18 22 63 1 54      
Suburban 19 12 22 53 1 41      
Suburban 22 17 21 60 1 50      
Suburban 26 27 24 77 1 71      
Suburban 22 21 23 66 1 60      
Suburban 19 15 17 51 1 37      
Suburban 21 12 20 53 1 27      
Suburban 26 18 22 66 1 34      
Suburban 22 25 21 68 1 48      
Suburban 21 21 21 63 1 39      
Suburban 20 20 20 60 1 44      
Suburban 22 18 22 62 1 41      
Suburban 23 20 19 62 1 37      
Suburban 24 21 23 68 1 47      
Suburban 23 27 22 72 1 67      
Suburban 24 24 22 70 1 68      
Suburban 26 17 24 67 1 49      
Suburban 22 22 19 63 1 29      
Suburban 24 18 22 64 1 33      
Suburban 20 19 20 59 1 39      
Suburban 26 19 23 68 1 39      
Suburban 22 15 21 58 1 28      
Suburban 18 20 18 56 1 46      
Suburban 26 27 25 78 1 70      
Suburban 25 26 23 74 1 60      
Suburban 22 25 22 69 1 52      
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