CORRELATION

& REGRESSION

MUHAMMAD HAFIZ BIN AKMAL HADI BIN

ABDUL HAKIM AHMAD
-2022646906 -2022821384

TEMPERATURE AND COFFEE SALES

INTRODUCTION
Temperature is known to have an impact on consumer behavior and
purchasing habits.
In the context of a coffee shop, temperature could be a key factor
affecting sales.
Correlation analysis can be used to investigate the relationship
between temperature and coffee sales.
Regression analysis can be used to develop a predictive model for
coffee sales based on temperature.
By understanding the relationship between temperature and coffee
sales, coffee shop owners or managers can make informed decisions
about staffing, inventory, and other aspects of their business.
In this study, we will analyze temperature and coffee sales data from a
local coffee shop and explore the correlation and regression between
the two variables.
PROBLEM STATEMENT
The relationship between temperature and
coffee sales in a local coffee shop is unclear.
Coffee shop owners or managers need to
understand the impact of temperature on sales
in order to make informed decisions about
staffing, inventory, and other aspects of their
business.
There is a need to investigate the correlation
and regression between temperature and coffee
sales to determine the strength of the
relationship and develop a predictive model for
sales based on temperature.
By addressing this problem, coffee shop owners
or managers can optimize their operations and
improve their profitability.
OBJECTIVE 1
TO DETERMINE THE
STRENGTH AND OBJECTIVE 2
OBJECTIVE 3
DIRECTION OF THE TO DEVELOP A
CORRELATION BETWEEN REGRESSION MODEL
TEMPERATURE AND THAT PREDICTS COFFEE TO PROVIDE
COFFEE SALES IN A SALES BASED ON ACTIONABLE INSIGHTS
LOCAL COFFEE SHOP. TEMPERATURE AND TO COFFEE SHOP
EVALUATE ITS OWNERS OR MANAGERS
ACCURACY AND ON HOW TO OPTIMIZE
PRECISION. THEIR OPERATIONS
BASED ON THE
RELATIONSHIP BETWEEN
TEMPERATURE AND
COFFEE SALES.
 DATA INTRODUCTION
The dataset contains information on coffee sales and customer data from
a local cafe over a period of several months.

The dataset includes variables such as the quantity coffee sold, and max
daily temperature in degrees fahrenheit

The temperature would be the explanatory variable and coffee sales would
be the response variable.

The dataset may be used to investigate the relationship between

temperature and coffee sales

The dataset is unique to the cafe and the surrounding area and may not be
generalizable to other contexts. Notes that data of day 34 will not be
included in calculation since the we dont have coffee salse data on that
day.

Dataset sheet Expectation of correlation value would be negative, higher temperature

give lower coffee sales
 Highlight from Research methodology,
test and tools involved
Methodology Test Tools involved
The data were collected using a convenience In this assignment, we use As for graphing and plotting
sampling method. Specifically, the data were correlation and regression test best-fitted line and also
collected from a group of college students
to determine relationship calculating correlation and
who were asked to complete a survey about
between temperature and regression we use tools such
their coffee consumption habits. The students
coffee sales as microsoft excel
were recruited through flyers and
announcements posted around campus, and
they were asked to complete the survey in
exchange for a small monetary
incentive.https://online.stat.psu.edu/stat200
/lesson/12/12.2/12.2.1.3
 Interesting Finding

The relationship between

temperature and coffee sales is
strong negatively relationship
About 54.95% of the variation in
coffee sales(number) can be
explained by Temperature(Degree
Farenheit)

SCATTER PLOT
The regression line has a negative slope, indicating an inverse
relationship between temperature and coffee consumption. ŷ = -0.56932X + 45.31309
As temperature increases, coffee consumption decreases.
The regression equation can be used to predict coffee sales
based on temperature.
This result shown that earlier prediction that value of
corrrelation is negative is correct.
 CONCLUSION
In conclusion, this study found that there is a significant relationship between temperature and coffee sales. We
have discovered the correlation analysis is strong negatively relationship between temperature and coffee sales.

Furthermore, by using regression analysis, we have found that about 54.95% of the variation in coffee sales can be
explained by temperature. This suggests that temperature is a significant factor in determining coffee sales. The
coffee shop owners and managers should consider temperature when making decisions that can related to
inventory management, pricing, and marketing strategies.

In the end, the results of this study align with previous research that has identified temperature as an
important factor in consumer behavior and decision-making. By using correlation and reggression analysis, it
can also demonstrates the significance of understanding the specific population studied as well as the
research variables used in the analysis.