Café 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: Price $2.50 $3.60 $2.10 $4.10 $3.10 $4.05 Number Sold 765 515 975 245 315 490 D Using simple linear regression and given that the price per cup is $1.75, the forecasted demand for mocha latte coffees will be cups (enter your response rounded to one decimal place).

Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter13: Regression And Forecasting Models
Section13.7: Exponential Smoothing Models
Problem 28P: The file P13_28.xlsx contains monthly retail sales of U.S. liquor stores. a. Is seasonality present...
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Café 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:
Price
$2.50
$3.60
$2.10
$4.10
$3.10
$4.05
Number Sold
765
515
975
245
315
490
Using simple linear regression and given that the price per cup is $1.75, the forecasted demand for mocha latte coffees will be
cups (enter your response rounded to one decimal place).
Transcribed Image Text:Café 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: Price $2.50 $3.60 $2.10 $4.10 $3.10 $4.05 Number Sold 765 515 975 245 315 490 Using simple linear regression and given that the price per cup is $1.75, the forecasted demand for mocha latte coffees will be cups (enter your response rounded to one decimal place).
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