Use the Following to Answer Questions 5 - 8 -Estimate the Linear Regression Model That Relates the Response Variable

question 28

Essay

Use the following to answer questions 5 - 8.
A small independent organic food store offers a variety of specialty coffees. To
determine whether price has an impact on sales, the managers kept track of how many
pounds of each variety of coffee were sold last month. The data, scatterplot and
summary statistics are shown below. $$\begin{array}{l}\begin{array} { | l | l | l | } \hline & \text { PRICE PER POUND } & \text { POUNDS SOLD } \\\hline & \$ 3.99 & 75 \\\hline & \$ 5.99 & 60 \\\hline & \$ 7.00 & 65 \\\hline & \$ 12.00 & 45 \\\hline & \$ 4.50 & 80 \\\hline & \$ 7.50 & 70 \\\hline & \$ 15.00 & 25 \\\hline & \$ 10.00 & 35 \\\hline & \$ 12.50 & 40 \\\hline & \$ 8.99 & 50 \\\hline & & \\\hline \text { Mean } & \$ 8.75 & 54.50 \\\hline \text { Standard Deviation } & \$ 3.63 & 18.33 \\\hline & & \\\hline \text { Correlation } & - 0.927 & \\\hline\end{array}\\\end{array}$$


-Estimate the linear regression model that relates the response variable (monthly sales)
to the predictor variable (price per pound).
a. Find the slope of the regression line.
b. Find the intercept of the regression line.
c. Write the equation of the linear model.

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Definitions:

Sensory Marketing

A marketing strategy that targets the senses of the consumer, aiming to create an emotional reaction and a stronger connection to the product or brand through sensory experiences.

Experiential Purchasing

The act of buying goods or services for the purpose of enjoying life experiences, rather than simply acquiring physical items.

Sensation

The process by which our sensory receptors and nervous system receive and represent stimulus energies from our environment.

Perception

The process by which individuals organize and interpret their sensory information to understand their environment.