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12.30. The manager of Sarah's Ice-Cream store needs an accurate forecast of the demand for ice-cream. The store orders ice-cream from a distributor a week ahead, and if too little is ordered the store loses business. If it orders too much, it must be thrown away. The manager believes that a major determinant of ice-cream sales is temperature; that is, the hotter it is, the more ice-cream people buy. Using an almanac, the manager has determined the average daytime temperature for 10 weeks selected at random and then, from store records, has determined the ice-cream consumption for the same 10 weeks. The data are summarized as follows: Week Temperature (Gallons Sold) 1 75 95 67 90 3 83 125 89 150 77 85 80 115 7 84 110 8 92 145 9. 89 130 65 100 10 a. Develop a linear regression model for this data and forecast the ice-cream consumption if the average weekly daytime tem- perature is expected to be 80. 4- 6

12.30. The manager of Sarah's Ice-Cream store needs an accurate forecast of the demand for ice-cream. The store orders ice-cream from a distributor a week ahead, and if too little is ordered the store loses business. If it orders too much, it must be thrown away. The manager believes that a major determinant of ice-cream sales is temperature; that is, the hotter it is, the more ice-cream people buy. Using an almanac, the manager has determined the average daytime temperature for 10 weeks selected at random and then, from store records, has determined the ice-cream consumption for the same 10 weeks. The data are summarized as follows: Week Temperature (Gallons Sold) 1 75 95 67 90 3 83 125 89 150 77 85 80 115 7 84 110 8 92 145 9. 89 130 65 100 10 a. Develop a linear regression model for this data and forecast the ice-cream consumption if the average weekly daytime tem- perature is expected to be 80. 4- 6

Practical Management Science
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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12.30. The manager of Sarah's Ice-Cream store needs an accurate forecast of the demand for ice-cream. The store orders ice-cream from a distributor a week ahead, and if too little is ordered the store loses business. If it orders too much, it must be thrown away. The manager believes that a major determinant of ice-cream sales is temperature; that is, the hotter it is, the more ice-cream people buy. Using an almanac, the manager has determined the average daytime temperature for 10 weeks selected at random and then, from store records, has determined the ice-cream consumption for the same 10 weeks. The data are summarized as follows: Week Temperature (Gallons Sold) 1 75 95 67 90 3 83 125 89 150 77 85 80 115 84 110 8 92 145 9. 89 130 10 65 100 a. Develop a linear regression model for this data and forecast the ice-cream consumption if the average weekly daytime tem- perature is expected to be 80. 4- 67
Transcribed Image Text:12.30. The manager of Sarah's Ice-Cream store needs an accurate forecast of the demand for ice-cream. The store orders ice-cream from a distributor a week ahead, and if too little is ordered the store loses business. If it orders too much, it must be thrown away. The manager believes that a major determinant of ice-cream sales is temperature; that is, the hotter it is, the more ice-cream people buy. Using an almanac, the manager has determined the average daytime temperature for 10 weeks selected at random and then, from store records, has determined the ice-cream consumption for the same 10 weeks. The data are summarized as follows: Week Temperature (Gallons Sold) 1 75 95 67 90 3 83 125 89 150 77 85 80 115 84 110 8 92 145 9. 89 130 10 65 100 a. Develop a linear regression model for this data and forecast the ice-cream consumption if the average weekly daytime tem- perature is expected to be 80. 4- 67
544 CHAPTER 12 Forecasting b. Determine the strength of the linear relationship between temperature and ice-cream consumption using correlation. c. Compute the coefficient of determination and explain its meaning.
Transcribed Image Text:544 CHAPTER 12 Forecasting b. Determine the strength of the linear relationship between temperature and ice-cream consumption using correlation. c. Compute the coefficient of determination and explain its meaning.
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