The manager of Gilley’s Ice Cream Parlor needs an accurate forecast of the demand for ice cream. The store orders ice cream from a distributor a week ahead; if the store orders too little, it loses business, and if it orders too much, the extra must be thrown away. The manager believes that a major determinant of ice cream sales is the temperature (i.e., the hotter the weather, the more ice cream people buy). Using an almanac, the manager has determined the average day time temperature for 14 weeks, selected at random, and from store records, he has determined the ice cream consumption for the same 14 weeks. These data are summarized as follows:

a. Develop a linear regression model for these data and forecast the ice cream consumption if the average weekly daytime temperature is expected to be 85 degrees.

b. Determine the strength of the linear relationship between temperature and ice cream consumption by using correlation.

c. What is the coefficient of determination? Explain its meaning

Gilley's Ice Cream Parlor
		x	y
		Ave. Temp	Ice cream Sold
	Week	(degrees)	(gal.)
	1	68	80
	2	70	115
	3	73	91
	4	79	87
	5	77	110
	6	82	128
	7	85	164
	8	90	178
	9	85	144
	10	92	179
	11	90	144
	12	95	197
	13	80	144
	14	75	123
	Place regression output here

(a)	Y = A + Bx
	A =
	B =
(b)	Correlation Coefficient
(c')	Coefficient of Determination
	Explain the meaning of the coefficient of Determination below. What does it indicate?

Average Temperature Ice Cream Sold Week (Degrees) (gal.) 1 68 80 2 70 115 3. 73 91 4 79 87 5 77 110 6. 82 128 7 85 164 8. 90 178 9. 85 144 10 92 179 11 90 144 12 95 197 13 80 144 14 75 123