12.30

Chapter 12 - problem 30 abc - using Excel - for part (a) - develop a linear regression model for gallons sold as a function of temperature only (not as a function of temperature and time), and forecast ice-cream consumption if the average weekly daytime temperature is expected to be 80.

Please show me formulas and how was work calculated

Thank you

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