You are interested in examining how the number of clients at a restaurant is affected by the restaurant's first review on Yelp. To study this, you collect data from a random sample of restaurants on the day after their first review. With this data you observe num_costumers which is a random variable that summarizes the number of customers the restaurant had that day and review which is the number of stars that the restaurant got on its first review. Use the descriptive statistics in the Stata output shown below to answer the following questions: . sum review num_costumers Variable | Obs Mean Std. Dev. Min Max review 200 2.3 1.46 0 5 num_costumers | 200 47.0 5.12 37 57 corr review num_costumers, cov . | review num_costumers review 2.1 num_costumers 7.3 26.2 Consider the following linear regression model: num_costumers = Bo + B₁reviews + u a. Use OLS to calculate $₁ b. Use OLS to calculate 30 c. Consider a restaurant that got a 3 star review. What are its expected number of costumers? d. A restaurant owner with 3 stars had 30 costumers. What is the regression residual for this observation?
