Question

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 Number Sold $2.70 770 $3.60 505 $2.10 990 $4.20 245 $3.10 315 $4.00 480 ​Part 2: Using simple linear regression and given that the price per cup is $1.80, the forecasted demand for mocha latte coffees will be 640 cups (Enter your response rounded to one decimal place). a. 600.5 b. 640.0 c. 680.2 d. 720.9

Answer 1

The student is asked to perform a simple linear regression to forecast the demand for mocha latte coffees based on price. The given price is $1.80 per cup and historical price and demand figures are provided. The forecasted demand must be calculated from the regression analysis.

None option is correct

Step-by-step explanation:

The question involves the application of simple linear regression to forecast the demand for mocha latte coffees based on the price. Given that the price per cup is $1.80, the forecasted demand for mocha latte coffees is asked to be calculated.

Other information provided in the question, such as the price elasticity of coffee demand and the historical context of coffee price fluctuations, may offer background but is not directly needed to perform the regression analysis.

None option is correct