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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.

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