Reference no: EM1372624
Q. A department store analyst is interested in using change in price of sugar in any given month to predict change in price of candy following month. She observes following monthly sequence of sugar prices (not sugar price changes):
80,82,85,81,80,80,80,84,88,89,90,88,84
Candy prices in same month are:
105,100,105,114,107,105,104,105,110,117,120,121,118
a) Construct appropriate scales for graphing and plot data.
b) Find estimated regression line.
c) What do you conclude about relationship between change in sugar price and change in candy price? Might this knowledge lead to improved forecasts? How can that help store operations?
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