Question: Caf 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
Caf 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:
Observation Price Number Sold 1 $2.50 765 2 $3.40 510 3 $2.00 975 4 $4.10 245 5 $3.20 320 6 $4.00 480
Using
simple linear regression
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and given that the price per cup is
$1.80,
the forecasted demand for mocha latte coffees will be
nothing
cups (enter your response rounded to one decimal place).
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