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 $2.702.70 770770 $3.503.50 515515 $2.002.00 980980 $4.104.10 240240 $3.203.20 320320 $4.054.05 475475 Expain the steps for usingsimple linear regression and given that the price per cup is $1.75, the forecasted demand for mocha latte coffees will be how many cups?
Inverse Normal Distribution
The method used for finding the corresponding z-critical value in a normal distribution using the known probability is said to be an inverse normal distribution. The inverse normal distribution is a continuous probability distribution with a family of two parameters.
Mean, Median, Mode
It is a descriptive summary of a data set. It can be defined by using some of the measures. The central tendencies do not provide information regarding individual data from the dataset. However, they give a summary of the data set. The central tendency or measure of central tendency is a central or typical value for a probability distribution.
Z-Scores
A z-score is a unit of measurement used in statistics to describe the position of a raw score in terms of its distance from the mean, measured with reference to standard deviation from the mean. Z-scores are useful in statistics because they allow comparison between two scores that belong to different normal distributions.
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
|
|
$2.702.70
|
770770
|
|
$3.503.50
|
515515
|
|
$2.002.00
|
980980
|
|
$4.104.10
|
240240
|
|
$3.203.20
|
320320
|
|
$4.054.05
|
475475
|
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