Question

month Cost hours

jan $40,000 3600

feb 38,500 3000

march 36,280 3300

April 38,000 3500

may 69,850 5850

june 45,000 4250

a) what is the slope coefficient?

b) What is the constant for the estimated cost equaion?

c) What is the estimated cost function for the above data?

d) What is the estimaed total cost at an operating level of 3100 hours?

Answer 1

a) The equation for determining a slope co-effecient is the linear equation y= a+bx where :

y is the the output value for a given variable input, a is the constant and b is slope and x is the independent input variable

The equation for deriving this is :-

.