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.
Assuming a linear relationship, use the least-squares method to compute the regression coefficients b 0 and b 1.
b 0 equals negative 31.72 and b 1 equals 1.29
(Round to two decimal places as needed.)
c. Interpret the meaning of the Y-intercept, b 0, and the slope, b 1. Choose the correct answer below.
A.
A practical interpretation of the Y-intercept b 0 is not meaningful because no operating restaurant is likely to have a rating of zero. The slope b 1 implies that for each increase of 1 in the summated rating, the cost per person is expected to increase by the value of b 1, in dollars.
B.
The Y-intercept, b 0, implies that if the summated rating of a restaurant is zero, the cost per meal is equal to b 0, in dollars. The slope, b 1, implies that for each increase of 1 in the summated rating, the cost per person is expected to decrease by b 1, in dollars.
C.
The Y-intercept, b 0, implies that if the summated rating of a restaurant is zero, the cost per meal is equal to b 0, in dollars. The slope, b 1, implies that for each increase of 1 dollar in the cost per person, the summated rating is expected to increase by b 1.
D.
The Y-intercept, b 0, implies that if the summated rating of a restaurant is zero, the cost per person is b 0, in dollars. The slope, b 1, implies the average cost per person is b 1 dollars.