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StatisticsQ&A LibraryBanquet Room Rental. The banquet room at the Saguaro Steak House can be rented at a rate of $40 per hour with a one time $75 clean-up charge. In addition there is a $16 per person charge for the restaurant’s buffet dinner, and a $5 per drink beverage charge. Let x1 be the number of hours the banquet room is rented, x2 the number of people who have the buffet dinner, x3 the number of drinks ordered, and y the total cost of holding a reception.a. Obtain the equation that expresses y in terms of x1, x2, and x3.b. Find b0, b1, b2, and b3.c. What is the change in the total cost of a reception if the number of hours and the number of drinks ordered does not change, but the number of people having the buffet dinner increases by one?d. What is the cost of a reception that lasts 4 hours and is attended by 50 people who have the buffet dinner and order 100 drinks?Question

Asked Jan 23, 2020

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Banquet Room Rental. The banquet room at the Saguaro Steak House can be rented at a rate of $40 per hour with a one time $75 clean-up charge. In addition there is a $16 per person charge for the restaurant’s buffet dinner, and a $5 per drink beverage charge. Let x1 be the number of hours the banquet room is rented, x2 the number of people who have the buffet dinner, x3 the number of drinks ordered, and y the total cost of holding a reception.

a. Obtain the equation that expresses y in terms of x1, x2, and x3.

b. Find b0, b1, b2, and b3.

c. What is the change in the total cost of a reception if the number of hours and the number of drinks ordered does not change, but the number of people having the buffet dinner increases by one?

d. What is the cost of a reception that lasts 4 hours and is attended by 50 people who have the buffet dinner and order 100 drinks?

Step 1

(a) According to the provided data, *y* is the response variable indicating the total cost of holding a reception. There are three predictors,

*x _{1}*: The number of hours the banquet room is rented

*x _{2}*: The number of people who have the buffet dinner

*x _{3}*: The number of drinks ordered.

The general form of the linear equation is:

Step 2

Using the mentioned information, the linear equation is obtained as:

Step 3

(b) On comparing the equation obtained in previous part with the general form o...

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