7.

The owner of a chain of fruit shake stores would like to study the correlation between
atmospheric temperature and sales during the summer season. A random sample of 12
days is selected with the results given as follows:

Day 1 2 3 4 5 6 7 8 9 10 11 12
Temperature (oF) 79 76 78 84 90 83 93 94 97 85 88 82
Total Sales (Units) 147 143 147 168 206 155 192 211 209 187 200 150

Determine the regression equation, plot the regression line and interpret it.

DAY TEMPERATURE (X) TOTAL SALES(y) x^2 y^2 xy

1 79 147 6241 21609 11613
2 76 143 5776 20449 10868
3 78 147 6084 21609 11466
4 84 168 7056 28224 14112
5 90 206 8100 42436 18540
6 83 155 6889 24025 12865
7 93 192 8649 36864 17856
8 94 211 8836 44521 19834
9 97 209 9409 43681 20273
10 85 187 7225 34969 15895
11 88 200 7744 40000 17600
12 82 150 6724 22500 12300
total 1029 2115 88733 380887 183222

220

210

200

190
Total Sales

180

170

160

150

140
75 80 85 90 95 100
Temperature

Regression Equation:
^y =ax+ b
where:

n ∑ xy−( ∑ x )( ∑ y )
a=
n¿¿
12( 183222)−(1029)( 2115)
a=
12 ( 88733 ) −(1029)2
a=3.749622166
a=3.7496
b= ý−a x́

b=
∑ y −a ∑ x
n n
2115 1029
b= −( 3.7496)
12 12
b=−145.2801
^y =ax+ b
^y =3.7496 x−145.2801

Day 1:
^y =3.7496 (79)−145.2801
^y =150.940
Day 2:
^y =3.7496 (76)−145.2801
^y =139.691
Day 3:
^y =3.7496 (78)−145.2801
^y =147.190
Day 4:
^y =3.7496 (84)−145.2801
^y =169.688
Day 5:
^y =3.7496 (90)−145.2801
^y =192.186
Day 6:
^y =3.7496 (83)−145.2801
^y =165.939
Day 7:
^y =3.7496 (93)−145.2801
^y =203.435
Day 8:
^y =3.7496 (94)−145.2801
^y =207.184
Day 9:
^y =3.7496 (97)−145.2801
^y =218.433
Day 10:
^y =3.7496 (85)−145.2801
^y =173.438
Day 11:
^y =3.7496 (88)−145.2801
^y =184.687
Day 12:
^y =3.7496 (82)−145.2801
^y =162.189
Plotting the regression line:

220.000
210.000
200.000
190.000
Total Sales

180.000
170.000
160.000
150.000
140.000
130.000
75 80 85 90 95 100
Temperature

What it looks with the given data

220

210

200

190
Total Sales

180

170

160

150

140
75 80 85 90 95 100
Temperature

Linear Correlation Coefficient:

n ∑ xy −( ∑ x )( ∑ y )
r=
√n ¿ ¿ ¿
12(183222)−(1029)(2115)
r=
√ 12 ( 88733 )−(1029)2 ∙ √12 ( 380887 )−(2115)2
r =0.9270572554
r =0.927

Interpretation:
From the computed data and table above, we can conclude that the correlation between
atmospheric temperature and sales during the summer season indicates a high positive correlation.
Meaning, increased atmospheric temperature is highly related with the increase in sales of fruit shake.