Question: Sheikh, a caf manager suspects that demand for vanilla latte coffees depends on the price being charged. Based on historical observations, Sheikh has gathered the

Sheikh, a caf manager suspects that demand for vanilla latte coffees depends on the price being charged. Based on historical observations, Sheikh has gathered the following data, which show the numbers of these coffees sold over six different price values:

PRICE (RM)

QUANTITY SOLD

2.70

760

3.50

510

2.00

980

4.80

250

3.10

320

4.20

480
  1. Using simple linear regression, find the forecasted quantity sold for vanilla latte coffees if the price per cup were RM2.80. (11 marks)
  2. Determine the correlation coefficient and coefficient of determination. (3 marks)

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