Opinions are split about the Pumpkin Spice Latte (PSL). Yet every year over the last five years the consumption of pumpkin-flavored goods has increased (loseit.com). If we look at the numbers, it also becomes clear why Starbucks keeps offering the PSL earlier and earlier every year. According to Fortune magazine, the amount spent by PSL buyers at Starbucks is about 17% higher than non-PSL buyers. The following table shows a random sample of eight consumers, the amount they spend per week, and the number of PSLs purchased per week. These data can also be found in the Excel file PSL.xlsx

a. Construct a scatter plot for these data.

b. Calculate the slope and the y-intercept for the regression formula.

c. Provide an interpretation for the value of the slope.

d. Predict the average amount spent by a customer who purchases 3 PSL drinks per week.

e. Calculate the SST.

f. Partition the SST into the SSR and SSE.

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PSL Spending PSL Spending 13.52 3 15.9 21.34 38.58 19.59 5 37.12 9.22 3 13.31