Question
The Koffi Coffee House Sales Management The owner of Koffi, the sole coffee house located in a resort area, wants to develop a forecast based
The Koffi Coffee House Sales Management
The owner of Koffi, the sole coffee house located in a resort area, wants to develop a forecast based on the relationship between tourism and coffee drinks sold. He has generated the following data over the past 12 months:
Month | Tourists (thousands) | Coffee Drinks (per day) |
January | 22 | 132 |
February | 25 | 175 |
March | 34 | 210 |
April | 30 | 150 |
May | 15 | 60 |
June | 10 | 50 |
July | 8 | 45 |
August | 6 | 40 |
September | 10 | 35 |
October | 15 | 75 |
November | 18 | 110 |
December | 20 | 140 |
The data from using Data Analysis on Excel is as follows:
SUMMARY OUTPUT | ||||
Regression Statistics | ||||
Multiple R | 0.954141355 | |||
R Square | 0.910385725 | |||
Adjusted R Square | 0.901424297 | |||
Standard Error | 18.57063782 | |||
Observations | 12 | |||
ANOVA | ||||
| df | SS | MS | F |
Regression | 1 | 35034.98077 | 35034.98 | 101.5894 |
Residual | 10 | 3448.685892 | 344.8686 | |
Total | 11 | 38483.66667 |
|
|
| Coefficients | Standard Error | t Stat | P-value |
Intercept | -11.5743276 | 12.46354188 | -0.92865 | 0.37494 |
Tourists (thousands) | 6.389163997 | 0.633898777 | 10.07915 | 1.48E-06 |
Questions for Case Example 2
Question 2-1. What is the approximate intercept, a?
Answer 2-1.
B=
Question 2-2. What is the approximate slope, b?
Answer 2-2.
Question 2-3. What is the forecasted number of coffee drinks sold if the number of tourists is 25 (thousand)?
Answer 2-3.
Question 2-4. What is the correlation?
Answer 2-4.
Question 2-5. What is the coefficient of determination?
Answer 2-5.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started