Café Michigan's manager, Gary Stark, suspects that demand for mocha latte coffees depends on the price being charged. Based on historical observations, Gary hasgathered the following data, which show the numbers of these coffees sold over six different price values:ITPriceNumber Sold$2.60$3.60$2.00$4.20$3.10$4.00770505975250315490Using simple linear regression and given that the price per cup is $1.85, the forecasted demand for mocha latte coffees will becups (enter your response rounded toone decimal place).

Given data: X Y 2.60 770 3.60 505 2.00 975 4.20 250 3.10 315 4.00 490 19.50 3305

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

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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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 $2.70 $3.50 $2.10 $4.10 $3.10 $4.05 Number Sold 765 515 990 245 320 480 Using simple linear regression and given that the price per cup is $1.85, the forecasted demand for mocha latte coffees will be cups (enter your response rounded to one decimal place).
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