Question
QUESTION 27 *REGRESSION-ESTIMATION AN IMPORTANT APPLICATION OF REGRESSION IN MANUFACTURING IS THE ESTIMATION OF COST OF...
QUESTION 27 *REGRESSION-ESTIMATION
AN IMPORTANT APPLICATION OF REGRESSION IN MANUFACTURING IS THE ESTIMATION OF COST OF PRODUCTION. BASED ON DATA FROM AJAX WIDGETS RELATING COST (Y) TO VOLUME (X), WHAT IS THE COST PER WIDGET?
| Production Volume (units) | Total Cost ($) |
| 400 | 4688 |
| 450 | 4893 |
| 550 | 5957 |
| 600 | 6105 |
| 700 | 7111 |
| 750 | 7743 |
| 425 | 4983 |
| 475 | 5461 |
| 575 | 6136 |
| 625 | 6302 |
| 725 | 7538 |
| 775 | 7596 |
Homework Answers
Answer #1
Minitab steps to obtain the Cost per Widget:
Step 1. Enter the data of Production Volume (units) and Total Cost ($) in Minitab columns.
Step 2. Click on Stat>Regression>Regression.
Step 3. Selcet Total Cost ($) in Response and Production Volume (units) in Predictors.
Step 4. Click OK.
The output is given below:
Therefore, the cost per widget is $8.2145.
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