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

question 51

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: $$\begin{array} { | c | c | r | } \hline \text { Coffee sales revenue } & \text { Temperature } & \text { Pastries/biscuits } \\\hline 6.5 & 25 & 7 \\\hline 10 & 17 & 13 \\\hline 5.5 & 30 & 5 \\\hline 4.5 & 35 & 6 \\\hline 3.5 & 40 & 3 \\\hline 28 & 9 & 15 \\\hline\end{array}$$ $\begin{array}{|l|r|l|l|l|l|l|}\hline \text { SUMMARY OUTPUT } & & & & & & \\\hline \text { Regression Statistios } & & & & & & \\\hline \text { Multiple R } & 0.87 & & & & & \\\hline \text { R Square } & 0.75 & & & & & \\\hline \text { Adjusted R Square } & 0.59 & & & & & \\\hline \text { Standard Error } & 5.95 & & & & & \\\hline \text { Observations } & 6.00 & & & & & \\\hline \\\hline \text { ANOVA } & & & & & \\\hline & {d f} & SS & M S & F & \text { Significance } F \\\hline \text { Regression } & 2.00 & 322.14 & 161.07 & 4.55 & 0.12 \\\hline \text { Residual } & 3.00 & 106.20 & 35.40 & & \\\hline \text { Total } & 5.00 & 428.33 & & & \\\hline \\\hline & \text { Coeffients } & \text { Standard Error } & \text { tStat } & \text { P-value } & {\text { Lower } 95 \%} & {\text { Upper } 95 \%} \\\hline \text { Intercept } & 18.68 & 37.88 & 0.49 & 0.66 & -101.88 & 139.24 \\\hline \text { Temperature } & -0.50 & 0.83 & -0.60 & 0.59 & -3.15 & 2.15 \\\hline \text { Pastries/biscuits } & 0.49 & 2.02 & 0.24 & 0.82 & -5.94 & 6.92 \\\hline\end{array}$ Comment on the difference between the coefficient of determination and the Adjusted coefficient of determination.

Appreciate the theoretical underpinnings of supply and demand through the lens of elasticity.

Understand the concept of price elasticity of demand and how to calculate it.

Distinguish between elastic, inelastic, and unitary elasticity of demand.

Identify factors that affect the elasticity of demand for goods and services.

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Definitions:

Notes Receivable

Financial assets representing amounts owed to a company by debtors, typically evidenced by formal instruments with specified payment terms.

Factoring Fee

A charge assessed for the service of factoring, where a business sells its receivables to a third party at a discount.

Accounts Receivable

The money owed to a business by its customers for goods or services delivered or used but not yet paid for, considered a current asset on the balance sheet.

Promissory Note

A Promissory Note is a financial instrument wherein one party promises in writing to pay a determinate sum of money to another, either at a fixed or determinable future time.