Pop-Up Coffee Vendors Have Been Popular in the City of Adelaide

question 100

Essay

Pop-up coffee vendors have been popular in the city of Adelaide in 2013. A vendor is interested in knowing how temperature (in degrees Celsius) and number of different pastries and biscuits offered to customers impacts daily hot coffee sales revenue (in $00's).
A random sample of 6 days was taken, with the daily hot coffee sales revenue and the corresponding temperature and number of different pastries and biscuits offered on that day, noted.
Excel output for a multiple linear regression is given below: $$\begin{array} { | c | c | r | } \hline \text { Coffee sales revenue } & \text { Temperature } & \text { Pastries/biscuits } \\\hline 6.5 & 25 & 7 \\\hline 10 & 17 & 13 \\\hline 5.5 & 30 & 5 \\\hline 4.5 & 35 & 6 \\\hline 3.5 & 40 & 3 \\\hline 28 & 9 & 15 \\\hline\end{array}$$ Test the significance of the coefficient on Pasties/biscuits against a two tailed alternative. Use the 5% level of significance.

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Definitions:

Illusory Correlation

The tendency to perceive a connection between variables, typically events or behaviors, where no such relationship exists.

First Instinct Fallacy

The misconception that an individual's initial answer or gut reaction is always the correct choice, especially in the context of test-taking or decision-making.

Ironic Processing

A psychological process where attempts to suppress certain thoughts make them more likely to surface.

Counterfactual Thinking

The mental process of imagining alternative scenarios and outcomes that could have happened, but didn't.