Cafe michigans manager, gary starkm 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 number of thesse coffees sold over six different price values: Price number sold $2.70 760 $3.50 510 $2.00 980 $4.20 250 $3.10 320 $4.05 480 Using simple linear regression and given that the price per cup is $2.80 the forecasted demand for mocha latte coffees will be [__] cups (enter your response rounded to one decimal place)
Correlation
Correlation defines a relationship between two independent variables. It tells the degree to which variables move in relation to each other. When two sets of data are related to each other, there is a correlation between them.
Linear Correlation
A correlation is used to determine the relationships between numerical and categorical variables. In other words, it is an indicator of how things are connected to one another. The correlation analysis is the study of how variables are related.
Regression Analysis
Regression analysis is a statistical method in which it estimates the relationship between a dependent variable and one or more independent variable. In simple terms dependent variable is called as outcome variable and independent variable is called as predictors. Regression analysis is one of the methods to find the trends in data. The independent variable used in Regression analysis is named Predictor variable. It offers data of an associated dependent variable regarding a particular outcome.
Cafe michigans manager, gary starkm 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 number of thesse coffees sold over six different price values:
Price number sold
$2.70 760
$3.50 510
$2.00 980
$4.20 250
$3.10 320
$4.05 480
Using simple linear regression and given that the price per cup is $2.80 the forecasted demand for mocha latte coffees will be [__] cups (enter your response rounded to one decimal place)
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