Consider the following to answer the question(s) below:
A small independent organic food store offers a variety of specialty coffees. To determine whether price has an impact on sales, the managers kept track of how many kilograms of each variety of coffee were sold last month. The data, scatterplot, and summary statistics are shown below.
Note: In answers to problems 2, 4, and 5 we will be using regression equation coefficients received by computer software. If we apply textbook formulae, the value of intercept will be a little bit different.
-Using the estimated regression equation,
a. Estimate the monthly sales (kilograms sold) for a variety of coffee that costs $12.00 per kilogram.
b. What is the residual for this estimate? What does it mean?

Question

Consider the following to answer the question(s) below:
A small independent organic food store offers a variety of specialty coffees. To determine whether price has an impact on sales, the managers kept track of how many kilograms of each variety of coffee were sold last month. The data, scatterplot, and summary statistics are shown below.
   Note: In answers to problems 2, 4, and 5 we will be using regression equation coefficients received by computer software. If we apply textbook formulae, the value of intercept will be a little bit different.
-Using the estimated regression equation,
a. Estimate the monthly sales (kilograms sold) for a variety of coffee that costs $12.00 per kilogram.
b. What is the residual for this estimate? What does it mean?

Quizplus · Accepted Answer

The Answer is a. 39.26 kilograms
b. 5.74 kilograms. It tells us that the actual number of kilograms sold were 5.74 kilograms more than the model predicted.

Consider the Following to Answer the Question(s) Below