Question

TEMPERATURE VS. LEMONADE SALES ($) Temp Lemonade Sales ($) Linear regression Equation: y=3.514x-124.25 92 200 37 5 Correlation coefficient: r=0.991 58 60 What type of correlation is this? 78 160 88 178 Predict the amount of lemonade sales if it is 82°F. 43 65 34 113 notes

Answer 1

As the coefficient r=0.991 is positive and close to 1, we can say that it is a strong positive correlation between temperature and lemonade sales.

We can use the the linear model to predict the sales for T=82:

`\begin{gathered} LS(82)=3.514(82)-124.25 \\ LS(82)=288.148-124.25 \\ LS(82)=163.898 \\ LS(82)\approx164 \end{gathered}`

The predicted lemonade sales for T= 82 F is $164.

Answer:

Strong positive correlation

Sales(82 F) = $164