Café Michigan's manager, Gary Stark, suspects that demand for mocha latte coffees depends on the price being charged. Based on historical observations, Gary has gathered the following data, which show the numbers of these coffees sold over six different price values: PriceNumber Sold$2.50760$3.40515$2.10980$4.20245$3.00325$4.00475Usingsimple linear regressionand given that the price per cup is$1.75, the forecasted demand for mocha latte coffees will be _____?_____ cups (enter your response rounded to one decimal place).

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Answered: Café Michigan's manager, Gary Stark,…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter13: Regression And Forecasting Models

Section13.6: Moving Averages Models

Problem 22P: The file P13_22.xlsx contains total monthly U.S. retail sales data. While holding out the final six...

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Café Michigan's manager, Gary Stark, suspects that demand for mocha latte coffees depends on the price being charged. Based on historical observations, Gary has gathered the following data, which show the numbers of these coffees sold over six different price values:

Price	Number Sold
$2.50	760
$3.40	515
$2.10	980
$4.20	245
$3.00	325
$4.00	475

Using

simple linear regression

and given that the price per cup is

$1.75, the forecasted demand for mocha latte coffees will be _____?_____ cups (enter your response rounded to one decimal place).

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