Question

1. Coffee Palace’s manager, Joe Felan, suspect that demand for mocha latte coffees depends on the price being charged. Based on historical observations, Joe has gathered the following data, which shows the numbers of these coffees sold over six different price values:

Price	Number Sold
$2.70	760
$3.50	510
$2.00	980
$4.20	250
$3.10	320
$4.05	480

Using these data, how many mocha latte coffees would be forecast to be sold according to simple linear regression if the price per cup were $2.80?

Answer 1

for x=2.80:

predicted value =1454.6045+2.8*-277.628=

677.25 ~ 677