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Causal regression: Top-Slice is a well-known manufacturer of golf balls. Looking at past sales, they have suspected a certain correlation between demand for golf balls

Causal regression:

Top-Slice is a well-known manufacturer of golf balls. Looking at past sales, they have suspected a certain correlation between demand for golf balls and local weather temperature at any given golfing area. To investigate this relationship, the following data has been collected for a certain location:

Month Monthly Sales Avg. Temperature
March 2017 4670 52
April 5310 58
May 6320 69
June 7080 75
July 7210 83
August 7040 82
September 6590 78
October 5520 65
November 4640 54
December 4000 48
January 2018 2840 41
February 3170 42

a) Plot the above data and decide if a linear model is reasonable.

b) Develop a regression relationship: what is the intercept and what is the slope?.

c) What is the model's correlation coefficient and coefficient of determination?

d) What is the standard error of the estimate?

e) Use the regression model to forecast the demand for June and July 2018, when the average temperatures are expected to be 76 and 82 degrees, respectively.

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