Explain what the numerical value of the slope of the linear regression equation in Problem 12.30 means. 

Data in Problem 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:

a. Develop a linear regression model for this data and forecast the ice-cream consumption if the average weekly daytime temperature is expected to be 80.

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:

Week 1 2 تنا 3 4 5 6 7 00 8 9 10 Temperature 75 67 83 89 77 80 84 92 89 65 (Gallons Sold) 95 90 125 150 85 115 110 145 130 100