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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

Math   Statistics-And-Probability   
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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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