Question
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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