Question

In: Statistics and Probability

Jason believes that the sales of coffee at his coffee shop depend upon the weather. He...

Jason believes that the sales of coffee at his coffee shop depend upon the weather. He has taken a sample of 6 days varying in degrees of temperature. Below you are given the results of the sample.

Cups of Coffee Sold

Temperature (in ⁰F)

350

  50

200

  60

220

  70

110

  80

  65

  90

  40

100

a. In this scenario, the dependent variable is .
b. The least squares estimated regression equation is .
c. The correlation coefficient (to four decimal places) between temperature and the sales of coffee is  .
d. The predicted sales of a 90-degree day is .
e. The residual for sales on a 90-degree is .

Solutions

Expert Solution

Temperature X Cup of coffee Y X * Y
50 350 17500 2500 122500
60 200 12000 3600 40000
70 220 15400 4900 48400
80 110 8800 6400 12100
90 65 5850 8100 4225
100 40 4000 10000 1600
Total 450 985 63550 35500 228825

Part a)

Dependent variable is cup of coffee sold

Part b)

Equation of regression line is


b = -5.9

a =( 985 - ( -5.9 * 450 ) ) / 6
a = 606.667
Equation of regression line becomes

Part c)



r = -0.9527

Part d)

When X = 90
= 606.667 + -5.9 X
= 606.667 + -5.9 * 90
= 75.67

Part e)

Residual = Y -

Residual = 65 - 75.67

Residual = -10.67


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