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I believe that the sentence may contain at least one typing error. The part which says, "We celebrated with dinner as a BYOB restaurant ..." should probably say,  "We celebrated with dinner at a BYOB restaurant ...". As for the remainder of the sentence, my understanding is that the speaker or writer is trying to say that there is a connection between the Christmas lights, which they seem to feel are unusual in a non-Christian context, and the low cots of the meal. They are not, however, specific about what the connection might be.

Correlated means that the two things are connected or linked to each other, and so the suggestion of the last sentence is that the cheap price of the Indian restaurant is linked to the fact that it is covered with Christmas lights.

The implication is that the Christmas lights are quite tacky, or in bad taste, which may be expected of a cheap restaurant.

The sentence means that the restaurant is below financial standards of the writer, and the presence of Christmas lights. Despite the  situation he/she can to get in context and believe these two elements are connected.

Or, it could just be a coincidence. If there was a much larger sample of data, it could serve to prove or disprove it. A sample size of just one is not enough to prove correlation. 

Hi Yuhki! 

I believe the last sentence is referring to the cheapness/affordability of the restaurant is directly related to the Christmas lights.

Probably as a strategy to draw in customers, the Indian restaurant is covered with Christmas decorations and has affordable prices.

What the last part of the last sentence is referring to is the presence of the lights and the cheapness of the restaurant. The Christmas lights give a certain connotation of tackiness. Tackiness is often associated with cheapness. 

Thank you so much !!!! 

Correlated means connected. If two things are correlated it means they have a relationship to each other. 

In this context, the writer is saying that these two things are connected:
1) the fact that the restaurant is covered with Christmas lights
2) the fact that the restaurant is very cheap.

The writer is implying that covering a restaurant with Christmas lights is tacky (in bad taste) and therefore it makes sense that it would be a cheap restaurant. 

Let me know if you need any further clarification on this!

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