Concept explainers
Cost Estimation Conclusion. Refer to exercise 21, where data on production volume and cost were used to develop an estimated regression equation relating production volume and cost for a particular manufacturing operation. Use α = .05 to test whether the production volume is significantly related to the total cost. Show the ANOVA table. What is your conclusion?
21. Cost Estimation. An important application of
- a. Use these data to develop an estimated regression equation that could be used to predict the total cost for a given production volume.
- b. What is the variable cost per unit produced?
- c. Compute the coefficient of determination. What percentage of the variation in total cost can be explained by production volume?
- d. The company’s production schedule shows 500 units must be produced next month. Predict the total cost for this operation.
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Modern Business Statistics with Microsoft Office Excel (with XLSTAT Education Edition Printed Access Card) (MindTap Course List)
- Life Expectancy The following table shows the average life expectancy, in years, of a child born in the given year42 Life expectancy 2005 77.6 2007 78.1 2009 78.5 2011 78.7 2013 78.8 a. Find the equation of the regression line, and explain the meaning of its slope. b. Plot the data points and the regression line. c. Explain in practical terms the meaning of the slope of the regression line. d. Based on the trend of the regression line, what do you predict as the life expectancy of a child born in 2019? e. Based on the trend of the regression line, what do you predict as the life expectancy of a child born in 1580?2300arrow_forwardWhat is regression analysis? Describe the process of performing regression analysis on a graphing utility.arrow_forwardDoes Table 1 represent a linear function? If so, finda linear equation that models the data.arrow_forward
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