Question

{Exercise 16.5}

Dataset:

Temperature	Beers
80	20,533
68	1,439
78	13,829
79	21,286
87	30,985
74	17,187
86	30,240
92	37,596
77	9,610
84	28,742

To help determine how many beers to stock the concession manager at Yankee Stadium wanted to know how the temperature affected beer sales. Accordingly, she took a sample of 10 games and recorded the number of beers sold and the temperature in the middle of the game.

a) Compute the coefficients of the regression line (to integer).

bo = __________

b1 =__________

b) Interpret the coefficients.

For each additional one degree increase in temperature the number of beers sold _______on average by _________ .

Answer 1

a) Here is the scatter plot and the linear reg line:

a) The linear reg line is :Beer = 1513.3(temp)-100678

b) A degree rise in temperature will lead to 1513.3 units of sale of beer. ( that ' how the slope or the coefficient of slope is intrepreted)

When the temperature is zero, then the Beer required become the contant coefficient which is negative. Implying that the there isn't beer consumption at low temperatures, which makes absolute sense.