[Steps Shown] The average daily temperature affects coffee sales at Ben’s Coffee Bean Café. The following data in the table show average temperature and


Question: The average daily temperature affects coffee sales at Ben’s Coffee Bean Café. The following data in the table show average temperature and coffee sales for various sample days during 2007. Use your calculator to compute the regression equation and the correlation calculations.

Day Temperature Coffee Sales
degrees dollars
29-Jan 22 $5536
26-Feb 15 $6402
25-Mar 34 $5410
22-Apr 56 $4613
20-May 63 $3902
17-Jun 77 $3462
15-Jul 96 $1800
12-Aug 85 $2579
9-Sep 83 $2489
7-Oct 69 $3855
4-Nov 53 $4734
2-Dec 37 $5617

A In the grid above plot the scatter for this problem.

B Determine the regression equation: y=

C Determine the correlation coefficient and the coefficient of determination. How would you describe the correlation between the temperature and coffee sales? (e.g. weak—moderate—strong; positive—negative) Explain your answer.

Coefficient of Determination =

Correlation Coefficient = _________
Describe the correlation _________________________________________________________________
_________________________________________________________________

Interpret the coefficient of determination: _________________________________________________________________
__________________________________________________________________

$
7000
6000
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4000
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1000
0 10 20 30 40 50 60 70 80 90 F

D Use the regression equation to predict the coffee sales on a day with an average daily temperature of 50? (Show your work.)


E Draw the regression line on the graph.

F Why can't you predict coffee sales for the coldest days, which usually drop to temperatures of 5 below zero ?


G Were the coffee sales on June 13 th more or less than expected? Explain.

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Solution: The downloadable solution consists of 5 pages
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