3.2 Hawaiian Shaved Ice, in Newton Grove, NC, sells shaved ice and snow cone equipment and supplies for individual and commercial use.

Suppose that you purchased a commercial-grade machine and supplies from a company similar to Hawaiian Shaved Ice to open a shaved ice stand on a beach busy with tourists. Because this is a new business, you’ve tried a number of prices and run a few specials to try to attract customers.

As such, you have 20 days’ worth of data to analyze and help you set a more permanent price.

a. Graph the data provided using a scatter plot.
Using the Insert Trendline function in Excel, determine whether you should use linear or log-linear regression. (Place the graph beneath the data; be sure to label both axes.)

b. Using Excel’s Regression Analysis function, run a regression, and answer the following questions about your output. (Place your regression results beneath the graph from part a.)

c. What is your estimated demand function?

d. Discuss the fit and significance of the regression.

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1234567 B 1 Smoothie Price Smoothie Quantity 4.08 56 3.61 67 3.5 69 2.46 84 1.69 108 7 5.33 45 8 2.33 91 9 3.14 76 10 4.33 51 11 4.72 49 12 2.57 86 13 2.58 88 14 3.62 70 15 4.78 53 16 4.24 60 17 2.19 97 18 3.86 67 19 3.38 20 2.91 21 4.58 275 70 79 57 22