Score: 0 of 1 pt 14 of 18 (16 complete) Hw Score: 77.78%, 14 of 18 pts Problem 4

Question

Score: 0 of 1 pt 14 of 18 (16 complete) Hw Score: 77.78%, 14 of 18 pts Problem 4.45 Question Help Café Michigan's manager, Gary Stark, suspects that demand for mocha latte coffees depends on the price being charged. Based on historical observations, Gary has gathered the following data, which show the numbers of these coffees sold over six different price values Price $2.70 $3.60 $2.00 $4.10 $3.00 $4.10 Number Sold 760 505 990 245 315 475 Using simple linear regression and given that the price per cup is $1.80, the forecasted demand for mocha latte coffees will be cups (enter your response rounded to one decimal place)

Explanation / Answer

a= (sum of Y*sum of X2 - sum of X*sum of XY)/(n*sum of X2 - (sum of X)2)

= 1427.55

b= (n*sum of XY - sum of X*sum of Y)/(n*sum of X2 - (sum of X)2)

= -270.52

Y = a + bx

Y = 1427.55 - 270.52x

x= 1.8

Y =  1427.55 - 270.52*1.8

= 940.61 units

X Y xy x^2 y^2 2.7 760 2052 7.29 577600 3.6 505 1818 12.96 255025 2 990 1980 4 980100 4.1 245 1004.5 16.81 60025 3 315 945 9 99225 4.1 475 1947.5 16.81 225625 19.5 3290 9747 66.87 2197600

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