Answered

Find the best solutions to your problems with the help of IDNLearn.com's expert users. Join our community to access reliable and comprehensive responses to your questions from experienced professionals.

Date:

Your Assignment: Coffee Shop Prices

Choosing a Model

You are helping your boss, the owner of a coffee shop, set prices. She has gathered some data by

counting the number of cups sold per day at various prices. Your job is to see if there is a relationship

between price and sales for one of the two most popular drinks.

Coffee sales:

Price: 1. 50 2. 20 2. 70 2. 50 2. 90 2. 00 1. 60 2. 10 3. 00 1. 80

Sales:

96

79

70

73

64

85

94

83

63

91

Tea sales:

Price: 2. 40 1. 50 1. 10 1. 60 2. 50 1. 30 1. 00 1. 70 2. 20 2. 00

Sales:

64

85

94

83

63

91

96

79

70

73

1. Which drink did you select? Circle one.



Sagot :

MrRoyalidn

The regression equation of sales of coffee is ŷ = -22.7x + 130.3, and the regression equation of sales of tea is ŷ = -22.7x + 119.0

How to determine the regression equations of the drinks?

The dataset of coffee is given as:

Price: 1.50 2.20 2.70 2.50 2.90 2.00 1.60 2.10 3.00 1.80

Sales: 96 79 70 73 64 85 94 83 63 91

Using a graphing calculator, we have the following calculation summary:

  • Sum of X = 22.3
  • Sum of Y = 798
  • Mean X = 2.23
  • Mean Y = 79.8
  • Sum of squares (SSX) = 2.521
  • Sum of products (SP) = -57.14
  • b = SP/SSX = -57.14/2.52 = -22.7
  • a = MY - bMX = 79.8 - (-22.67*2.23) = 130.3

The regression equation is represented as:

ŷ = bx + a

So, we have:

ŷ = -22.7x + 130.3

The dataset of tea is given as:

Price: 2.40 1.50 1.10 1.60 2.50 1.30 1.00 1.70 2.20 2.00

Sales: 64 85 94 83 63 91 96 79 70 73

Using a graphing calculator, we have the following calculation summary:

  • Sum of X = 17.3
  • Sum of Y = 798
  • Mean X = 1.73
  • Mean Y = 79.8
  • Sum of squares (SSX) = 2.521
  • Sum of products (SP) = -57.14
  • b = SP/SSX = -57.14/2.52 = -22.7
  • a = MY - bMX = 79.8 - (-22.67*1.73) = 119.0

The regression equation is represented as:

ŷ = bx + a

So, we have:

ŷ = -22.7x + 119.0

Hence, the regression equation of sales of coffee is ŷ = -22.7x + 130.3, and the regression equation of sales of tea is ŷ = -22.7x + 119.0

Read more about regression at:

https://brainly.com/question/17844286

#SPJ1

We are delighted to have you as part of our community. Keep asking, answering, and sharing your insights. Together, we can create a valuable knowledge resource. Your questions deserve accurate answers. Thank you for visiting IDNLearn.com, and see you again for more solutions.