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Lori Cook has developed the following forecasting model:
y^ = 36 + 4.3x
where: y^ = demand for Kool Air conditioners and
x = the outside temperature (oF)
a) Forecast demand for the Kool Air when the temperature is 70°F.
b) What is demand when the temperature is 80°F?
c) What is demand when the temperature is 90°F?
Price
Number Sold
$2.70
760
$3.50
510
$2.00
980
$4.20
250
$3.10
320
$4.05
480
Using these data, how many mocha latte coffees would be forecast to be sold according to simple linear regression if the price per cup were $2.80?
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