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

question 64

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) 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 of that day noted. Excel regression output given below. $$\begin{array} { | c | c | } \hline \text { Coffee sales revenue } & \text { Temperature } \\\hline 6.50 & 25 \\\hline 10.00 & 17 \\\hline 5.50 & 30 \\\hline 4.50 & 35 \\\hline 3.50 & 40 \\\hline 28.00 & 9 \\\hline\end{array}$$ Test the significance of the slope, against a two-tailed alternative, at the 5% level of significance.

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Definitions:

Finished Goods Inventory

The products that have completed the manufacturing process, ready to be sold to customers.

Overapplied

Refers to a situation in managerial accounting where the applied overhead is more than the actual overhead incurred.

Underapplied

A situation where the allocated or applied costs are less than the actual costs incurred.

Raw Materials

The basic materials and components used in the production process to create finished goods.