Question: The manager of Gilley’s Ice Cream Parlor needs an accurate forecast of the demand for ice cream. The store orders ice cream from a distributor a week ahead; if the store orders too little, it loses business, and if it orders too much, the extra must be thrown away. The manager belives that a major determinant of ice cream sales is temperature (i.e.,the hotter the weather, the more ice cream people buy). Using an almanac, the manager has determined the average day time temperature for 14 weeks, selected at random, and from store records he has determined the ice cream consumption for the same 14 weeks. These data are summarized as follows:

Week Average Temperature (Degrees) Ice Cream Sold (gal.)

1 68 80

2 70 115

3 73 91

4 79 87

5 77 110

6 82 128

7 85 164

8 90 178

9 85 144

10 92 179

11 90 144

12 95 197

13 80 144

14 75 123

1. Develop a linear regression model for these data and forecast the ice cream consumption if the average weekly daytime temperature is expected to be 85 degrees.
2. Determine the strength of the linear relationship between temperature and ice cream consumption by using correlation. c. What is the coefficient of determination? Explain its meaning.

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