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12-30. Please answer correctly using excel (All Parts) 12.30. The manager of Sarah's Ice-Cream store needs an accurate forecast of the demand for ice-cream. The
12-30. Please answer correctly using excel (All Parts)
12.30. The manager of Sarah's Ice-Cream store needs an accurate forecast of the demand for ice-cream. The store orders ice-cream from a distributor a week ahead, and if too little is ordered the store loses business. If it orders too much, it must be thrown away. The manager believes that a major determinant of ice-cream sales is temperature; that is, the hotter it is, the more ice-cream people buy. Using an almanac, the manager has determined the average daytime temperature for 10 weeks selected at random and then, from store records, has determined the ice-cream consumption for the same 10 weeks. The data are summarized as follows: a. Develop a linear regression model for this data and forecast the ice-cream consumption if the average weekly daytime temperature is expected to be 80 . 544 CHAPTER 12 Forecasting b. Determine the strength of the linear relationship between temperature and ice-cream consumption using correlation. c. Compute the coefficient of determination and explain its meaning Step by Step Solution
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