Question

The Pepsi Corporation wants to explore the relationship between the daily temperature in California and the quantity of soft drinks that it sells at Dadger’s Baseball Stadium. The average daily temperature for 12 randomly selected days and the quantity of soft drinks sold on each of these days are given below:

Average Daily Temperature

            70
            75
            80
            90
            93
            98
            72
            75
            75
            80
            90
            95

Quantity Sold (thousands)

           30
           28
           40
           52
           57
           54
           27
           38
           32
           46
           49
           51

Determine the standard error of estimate.

Answer 1

using excel>data>data analysis >Regression

we have

SUMMARY OUTPUT
Regression Statistics
Multiple R	0.930914
R Square	0.8666
Adjusted R Square	0.85326
Standard Error	4.164372
Observations	12
ANOVA
	df	SS	MS	F	Significance F
Regression	1	1126.58	1126.58	64.96255	1.1E-05
Residual	10	173.4199	17.34199
Total	11	1300
	Coefficients	Standard Error	t Stat	P-value	Lower 95%	Upper 95%	Lower 95.0%	Upper 95.0%
Intercept	-43.0589	10.62154	-4.05392	0.002309	-66.7251	-19.3926	-66.7251	-19.3926
temperature	1.027902	0.127532	8.059935	1.1E-05	0.743742	1.312061	0.743742	1.312061

the standard error of estimate is 4.164372