The below data on the production volume x and total cost y (in dollars) for a particular manufacturing operation were used to develop the estimated regression equation ŷ = 1,430.67 + 7.28x. Production Volume (units) Total Cost ($) 400 4,000 450 5,000 550 5,500 600 6,000 700 6,300 750 6,900 (a) The company's production schedule shows that 650 units must be produced next month. What is the point estimate of the total cost (in dollars) for next month? (Round your answer to the nearest cent.) $ (b) Develop a 99% prediction interval for the total cost (in dollars) for next month. (Round your answers to the nearest cent.) $ to $ (c) If an accounting cost report at the end of next month shows that the actual production cost during the month was $7,200, should managers be concerned about incurring such a high total cost for the month? Discuss. Since $7,200 is the prediction interval, managers should concerned about incurring such a high total cost for one month
The below data on the production volume x and total cost y (in dollars) for a particular manufacturing operation were used to develop the estimated regression equation ŷ = 1,430.67 + 7.28x. Production Volume (units) Total Cost ($) 400 4,000 450 5,000 550 5,500 600 6,000 700 6,300 750 6,900 (a) The company's production schedule shows that 650 units must be produced next month. What is the point estimate of the total cost (in dollars) for next month? (Round your answer to the nearest cent.) $ (b) Develop a 99% prediction interval for the total cost (in dollars) for next month. (Round your answers to the nearest cent.) $ to $ (c) If an accounting cost report at the end of next month shows that the actual production cost during the month was $7,200, should managers be concerned about incurring such a high total cost for the month? Discuss. Since $7,200 is the prediction interval, managers should concerned about incurring such a high total cost for one month
Functions and Change: A Modeling Approach to College Algebra (MindTap Course List)
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ISBN:9781337111348
Author:Bruce Crauder, Benny Evans, Alan Noell
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Chapter3: Straight Lines And Linear Functions
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Problem 15CR: Life Expectancy The following table shows the average life expectancy, in years, of a child born in...
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The below data on the production volume x and total cost y (in dollars) for a particular manufacturing operation were used to develop the estimated regression equation
ŷ = 1,430.67 + 7.28x.
| Production Volume (units) |
Total Cost ($) |
|---|---|
| 400 | 4,000 |
| 450 | 5,000 |
| 550 | 5,500 |
| 600 | 6,000 |
| 700 | 6,300 |
| 750 | 6,900 |
(a)
The company's production schedule shows that 650 units must be produced next month. What is the point estimate of the total cost (in dollars) for next month? (Round your answer to the nearest cent.)
$
(b)
Develop a 99% prediction interval for the total cost (in dollars) for next month. (Round your answers to the nearest cent.)
$ to $
(c)
If an accounting cost report at the end of next month shows that the actual production cost during the month was $7,200, should managers be concerned about incurring such a high total cost for the month? Discuss.
Since $7,200 is the prediction interval, managers should concerned about incurring such a high total cost for one month
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