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
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’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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