Question

# Production Volume (units) Total Cost (\$) 400 3500 450 4500 550 4900 600 5400 700 5900...

1.  Production Volume (units) Total Cost (\$) 400 3500 450 4500 550 4900 600 5400 700 5900 750 6500 Production Target Est. Cost (\$) 500

Compute b1 and b0 (to 1 decimal).

b1 _______

b0_________

Complete the estimated regression equation (to 1 decimal).

y = ____ +_____ x

2. According to this model, what is the change in cost (in dollars) for every unit produced (to 1 decimal)?

_______

3. Compute the coefficient of determination (to 3 decimals). Note: report r2 between 0 and 1.

r2 = _______

What percentage of the variation in total cost can be explained by the production volume (to 1 decimal)?

_____%_____

4. The company's production schedule shows 500 units must be produced next month. What is the estimated total cost for this operation (to the nearest whole number)?

The statistical software output for this problem is : (a)

b1 = 7.6

b0 = 746.7

y = 746.7 + 7.6

(b)

The change in cost = 7.6

(c)

r2 = 0.959

95.9%

(d)

Total cost = 4547

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