Lori Cook has developed the following forecasting model:
y^ = 36 + 4.3x
where: y^ = demand for Kool Air conditioners and
x = the outside temperature (oF)
a) Forecast demand for the Kool Air when the temperature is 70°F.
b) What is demand when the temperature is 80°F?
c) What is demand when the temperature is 90°F?
|
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?